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S4280 (ACTIVE) - Summary

Relates to transportation network companies that use a digital network to connect transportation network drivers to transportation network riders for the purpose of providing transportation; provides for insurance for such companies and implements registration, regulation and operational requirements.

S4280 (ACTIVE) - Sponsor Memo

BILL NUMBER:S4280
TITLE OF BILL: An act to amend the insurance law, the vehicle and
traffic law, the general municipal law and the transportation law, in
relation to transportation network companies
PURPOSE: To establish, regulate and provide proper insurance for
transportation network companies and drivers.
SUMMARY OF PROVISIONS:
Section one of this bill amends section 5106 of the insurance law to
provide for the payment of first party benefits under transportation
network company (TNC) insurance policies in cases where more than one
insurance policy may be involved, while preserving the rights of the
TNC insurer to seek recourse from the insurer issuing any such other
policy.
Section two adds a new section 3455 to the insurance law that
authorizes group insurance policies for TNCs and TNC drivers.
Sections three, four and seven amend various provisions of the vehicle
and traffic law and the general municipal law to exclude TNCS from
certain requirements of local taxi and livery commissions in
jurisdictions outside of the City of New York.

Section five amends subdivision 7 of section 401 of the vehicle and
traffic law to exempt TNC drivers from current requirements to obtain
commercial vehicle registration in favor of new requirements in
section 9 of this legislation. Section six amends paragraph c of
subdivision 1 of section 498 of the vehicle and traffic law to exempt
TNC drivers from requirements pertaining to inter-jurisdictional
for-hire vehicle trips.
Section eight amends section 151 of the transportation law to exempt
TNC drivers from requirements that apply to common carriers.
Section nine adds a new Article 46-A of the vehicle and traffic law to
create and regulate TNCs and TNC drivers through establishment of
registration, operational and insurance requirements.
Section 10 is the effective date.
JUSTIFICATION: Transportation Network Companies (TNCs) provide a
digital platform that matches consumers with a community of vetted
local drivers offering rides using their personal vehicles. Existing
transportation options alone can no longer fully accommodate growing
populations, yet 80% of the seats in personal vehicles remain empty.
TNC platforms are already filling those empty seats across the country
by providing additional transportation options to communities that
need them most and reducing the economic burden of car ownership.
The broader benefits of ridesharing are being realized in communities
where TNCs have been able to scale effectively. Ridesharing protects
consumer choice, responds to unmet market demands, supplies accessible
and affordable transportation options to underserved areas, provides
economic opportunities, reduces drunk driving, eases traffic
congestion, curbs air pollution and provides last mile solutions to
commuters seeking to utilize existing transit options. TNCs are
continuing to evolve to maximize these benefits with innovative
options in the largest markets where they have been able to grow
within the framework of reasonable regulation.
TNCs have proactively addressed safety issues by developing practices
and policies that provide unprecedented transparency for both
passengers and drivers. They have worked with insurers to develop
policies that provide a significantly higher level of coverage than is
required or typical for-hire-vehicles in New York. These policies can
help set a baseline for consumer protection while competition will
continue to push standards even higher.
This bill would balance the need to ensure that necessary safety
standards are met by existing and emerging TNCs while enabling growth
and innovation to fully realize the benefits that consumers are
demanding.
LEGISLATIVE HISTORY: New Bill.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately.

S T A T E O F N E W Y O R K
________________________________________________________________________
4280
2015-2016 Regular Sessions
I N S E N A T E
March 11, 2015
___________
Introduced by Sen. SEWARD -- read twice and ordered printed, and when
printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, the vehicle and traffic law, the
general municipal law and the transportation law, in relation to
transportation network companies
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 5106 of the insurance law is amended by adding a
new subsection (e) to read as follows:
(E) NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (D) OF THIS SECTION,
IF (I) MORE THAN ONE INSURER HAS ISSUED AN OWNER'S POLICY OF LIABILITY
INSURANCE ON THE SAME MOTOR VEHICLE, (II) ONE SUCH POLICY WAS ISSUED IN
SATISFACTION OF THE REQUIREMENTS OF ARTICLE SIX OF THE VEHICLE AND TRAF-
FIC LAW, AND (III) ONE SUCH POLICY WAS ISSUED IN SATISFACTION OF THE
REQUIREMENTS OF SUBDIVISION TWO OF SECTION TWO THOUSAND TWO HUNDRED
THREE OF THE VEHICLE AND TRAFFIC LAW, THEN THE INSURER ISSUING THE POLI-
CY IN SATISFACTION OF THE REQUIREMENTS OF SUBDIVISION TWO OF SECTION TWO
THOUSAND TWO HUNDRED THREE OF THE VEHICLE AND TRAFFIC LAW SHALL BE
RESPONSIBLE FOR PAYMENT OF FIRST PARTY BENEFITS WHEN A DISPUTE EXISTS AS
TO WHICH SUCH POLICY IS APPLICABLE. WHEN THERE IS SUCH A DISPUTE, THE
INSURER ISSUING THE POLICY IN SATISFACTION OF THE REQUIREMENTS OF SUBDI-
VISION TWO OF SECTION TWO THOUSAND TWO HUNDRED THREE OF THE VEHICLE AND
TRAFFIC LAW SHALL HAVE THE RIGHT TO RECOVER THE AMOUNT PAID FROM THE
OTHER INSURER TO THE EXTENT THAT THE LOSS AROSE FROM THE USE AND OPERA-
TION OF THE INSURED MOTOR VEHICLE OTHER THAN AS A TRANSPORTATION NETWORK
VEHICLE. ANY SUCH DISPUTE SHALL BE RESOLVED IN ACCORDANCE WITH THE ARBI-
TRATION PROCEDURES ESTABLISHED PURSUANT TO SECTION FIVE THOUSAND ONE
HUNDRED FIVE OF THIS ARTICLE AND REGULATIONS AS PROMULGATED BY THE
SUPERINTENDENT.
S 2. The insurance law is amended by adding a new section 3455 to read
as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09726-01-5

S. 4280 2
S 3455. TRANSPORTATION NETWORK COMPANY GROUP INSURANCE POLICIES. (A)
FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY:
(1) "TRANSPORTATION NETWORK COMPANY" SHALL HAVE THE MEANING SET FORTH
IN SUBDIVISION FOUR OF SECTION TWO THOUSAND TWO HUNDRED ONE OF THE VEHI-
CLE AND TRAFFIC LAW.
(2) "CERTIFICATE" OR "CERTIFICATE OF INSURANCE" MEANS ANY POLICY,
CONTRACT OR OTHER EVIDENCE OF INSURANCE, OR RIDER OR ENDORSEMENT THERE-
TO, ISSUED TO A GROUP MEMBER UNDER A TRANSPORTATION NETWORK COMPANY
GROUP POLICY.
(3) "TRANSPORTATION NETWORK COMPANY GROUP POLICY" MEANS GROUP POLICY,
INCLUDING CERTIFICATE ISSUED TO THE GROUP MEMBERS, WHERE THE GROUP POLI-
CYHOLDER IS A TRANSPORTATION NETWORK COMPANY AND THE POLICY PROVIDES
INSURANCE TO THE TRANSPORTATION NETWORK COMPANY AND TO GROUP MEMBERS OF
THE TYPE DESCRIBED IN PARAGRAPHS THIRTEEN, FOURTEEN AND/OR NINETEEN OF
SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS
CHAPTER, SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE FOR
BODILY INJURY PURSUANT TO PARAGRAPH TWO OF SUBSECTION (F) OF SECTION
THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE AND OTHER COVERAGES
AS PERMITTED BY THIS SECTION.
(4) "GROUP MEMBER" MEANS A "TRANSPORTATION NETWORK DRIVER" AS SUCH
TERM IS DEFINED IN SUBDIVISION FIVE OF SECTION TWO THOUSAND TWO HUNDRED
ONE OF THE VEHICLE AND TRAFFIC LAW AND WHO IS INSURED UNDER THE TRANS-
PORTATION NETWORK COMPANY GROUP POLICY.
(B) A TRANSPORTATION NETWORK COMPANY GROUP POLICY OR CERTIFICATE MAY
BE ISSUED OR ISSUED FOR DELIVERY IN THIS STATE ONLY IN COMPLIANCE WITH
THE PROVISIONS OF THIS SECTION.
(C) COVERAGE UNDER A TRANSPORTATION NETWORK COMPANY GROUP POLICY SHALL
EXTEND TO GROUP MEMBERS AND THE TRANSPORTATION NETWORK COMPANY.
(D) A TRANSPORTATION NETWORK COMPANY GROUP POLICY MAY PROVIDE ONLY THE
INSURANCE COVERAGES DESCRIBED IN PARAGRAPHS THIRTEEN, FOURTEEN AND/OR
NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THIS CHAPTER AND SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS
INSURANCE FOR BODILY INJURY PURSUANT TO PARAGRAPH TWO IF SUBSECTION (F)
OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE. IF
OBTAINED TO SATISFY THE FINANCIAL RESPONSIBILITY REQUIREMENTS OF
SUBSECTION TWO OF SECTION TWO THOUSAND TWO HUNDRED THREE OF THE VEHICLE
AND TRAFFIC LAW, A TRANSPORTATION NETWORK COMPANY GROUP POLICY SHALL
PROVIDE FOR THE PAYMENT OF FIRST PARTY BENEFITS PURSUANT TO ARTICLE
FIFTY-ONE OF THIS CHAPTER AND BENEFITS IN ACCORDANCE WITH SECTION THREE
THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE.
(E) THE PREMIUM FOR THE TRANSPORTATION NETWORK COMPANY GROUP POLICY,
INCLUDING CERTIFICATES MAY BE PAID BY THE GROUP POLICYHOLDER FROM THE
FUNDS CONTRIBUTED:
(1) WHOLLY BY THE GROUP POLICYHOLDER;
(2) WHOLLY BY THE GROUP MEMBERS; OR
(3) JOINTLY BY THE GROUP POLICYHOLDER AND THE GROUP MEMBERS.
(F) (1) ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETRO-
SPECTIVE PREMIUM REFUND IN RESPECT OF PREMIUMS PAID BY THE GROUP POLICY-
HOLDER MAY:
(A) BE APPLIED TO REDUCE THE PREMIUM CONTRIBUTION OF THE GROUP POLICY-
HOLDER, BUT NOT IN EXCESS OF THE PROPORTION TO ITS CONTRIBUTION; OR
(B) BE RETAINED BY THE GROUP POLICYHOLDER.
(2) ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETROSPEC-
TIVE PREMIUM REFUND NOT DISTRIBUTED UNDER PARAGRAPH ONE OF THIS
SUBSECTION SHALL BE:
S. 4280 3
(A) APPLIED TO REDUCE FUTURE PREMIUMS AND, ACCORDINGLY, FUTURE
CONTRIBUTIONS, OF EXISTING OR FUTURE GROUP MEMBERS, OR BOTH; OR
(B) PAID OR REFUNDED TO THOSE GROUP MEMBERS INSURED ON THE DATE THE
PAYMENT OR REFUND IS MADE TO THE GROUP POLICYHOLDER, IF DISTRIBUTED BY
THE GROUP POLICYHOLDER, OR ON THE DATE OF MAILING, IF DISTRIBUTED
DIRECTLY BY THE INSURER, SUBJECT TO THE FOLLOWING REQUIREMENTS:
(I) THE INSURER SHALL BE RESPONSIBLE FOR DETERMINING THE ALLOCATION OF
THE PAYMENT OF REFUND TO THE GROUP MEMBERS;
(II) IF THE GROUP POLICYHOLDER DISTRIBUTES THE PAYMENT OR REFUND, THE
INSURER SHALL BE RESPONSIBLE FOR AUDIT TO ASCERTAIN THAT THE PAYMENT OR
REFUND IS ACTUALLY MADE IN ACCORDANCE WITH THE ALLOCATION PROCEDURE; AND
(III) IF THE GROUP POLICYHOLDER FAILS TO MAKE THE PAYMENT OR REFUND,
THE INSURER SHALL MAKE THE PAYMENT OR REFUND DIRECTLY OR USE THE METHOD
PROVIDED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH.
(3) NOTWITHSTANDING PARAGRAPHS ONE AND TWO OF THIS SUBSECTION, IF A
DIVIDEND ACCRUES UPON TERMINATION OF COVERAGE UNDER A TRANSPORTATION
NETWORK COMPANY GROUP POLICY, THE PREMIUM FOR WHICH WAS PAID OUT OF
FUNDS CONTRIBUTED BY GROUP MEMBERS SPECIFICALLY FOR THE COVERAGE, THE
DIVIDEND SHALL BE PAID OR REFUNDED BY THE GROUP POLICYHOLDER TO THE
GROUP MEMBERS INSURED ON THE DATE THE PAYMENT OR REFUND IS MADE TO THE
GROUP POLICYHOLDER, NET OF REASONABLE EXPENSES INCURRED BY THE GROUP
POLICYHOLDER IN PAYING OR REFUNDING THE DIVIDEND TO SUCH GROUP MEMBERS.
(4) FOR THE PURPOSES OF THIS SUBSECTION, "DIVIDEND" MEANS A RETURN BY
THE INSURER OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY OF EXCESS
PREMIUMS TO THE GROUP POLICYHOLDER IN LIGHT OF FAVORABLE LOSS EXPERI-
ENCE, INCLUDING RETROSPECTIVE PREMIUM CREDITS OR RETROSPECTIVE PREMIUM
REFUNDS. THE TERM "DIVIDEND" DOES NOT INCLUDE REIMBURSEMENTS OR FEES
RECEIVED BY A GROUP POLICYHOLDER IN CONNECTION WITH THE OPERATION OR
ADMINISTRATION OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUD-
ING ADMINISTRATIVE REIMBURSEMENTS, FEES FOR SERVICES PROVIDED BY THE
GROUP POLICYHOLDER, OR TRANSACTIONAL SERVICE FEES.
(G) THE INSURER MUST TREAT IN LIKE MANNER ALL ELIGIBLE GROUP MEMBERS
OF THE SAME CLASS.
(H) A TRANSPORTATION NETWORK COMPANY GROUP POLICY OR CERTIFICATE SHALL
NOT BE ELIGIBLE FOR PLACEMENT BY AN EXCESS LINE BROKER LICENSED PURSUANT
TO ARTICLE TWENTY-ONE OF THIS CHAPTER.
(I) EACH POLICY WRITTEN PURSUANT TO THIS SECTION SHALL PROVIDE PER
OCCURRENCE LIMITS OF COVERAGE FOR EACH GROUP MEMBER IN AN AMOUNT NOT
LESS THAN THAT REQUIRED BY OF SUBDIVISION TWO OF SECTION TWO THOUSAND
TWO HUNDRED THREE OF THE VEHICLE AND TRAFFIC LAW, AND MAY PROVIDE COVER-
AGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED UNDER THE LAW.
(J) (1) THE INSURER OR THE GROUP POLICYHOLDER SHALL BE RESPONSIBLE FOR
MAILING OR DELIVERY OF A CERTIFICATE OF INSURANCE TO EACH GROUP MEMBER
INSURED UNDER THE TRANSPORTATION NETWORK COMPANY GROUP POLICY. THE
INSURER OR THE GROUP POLICYHOLDER SHALL ALSO BE RESPONSIBLE FOR THE
MAILING OR DELIVERY TO EACH GROUP MEMBER OF AN AMENDED CERTIFICATE OF
INSURANCE OR ENDORSEMENT TO THE CERTIFICATE, WHENEVER THERE IS A CHANGE
IN LIMITS; CHANGE IN TYPE OF COVERAGE; ADDITION, REDUCTION, OR ELIMI-
NATION OF COVERAGE; OR ADDITION OF EXCLUSION, UNDER THE TRANSPORTATION
NETWORK COMPANY GROUP POLICY OR CERTIFICATE.
(2) THE CERTIFICATE SHALL CONTAIN IN SUBSTANCE ALL MATERIAL TERMS AND
CONDITIONS OF COVERAGE AFFORDED TO GROUP MEMBERS, UNLESS THE TRANSPORTA-
TION NETWORK COMPANY GROUP POLICY IS INCORPORATED BY REFERENCE AND A
COPY OF THE GROUP POLICY ACCOMPANIES THE CERTIFICATE.
(3) IF ANY COVERAGE AFFORDED TO THE GROUP MEMBER IS EXCESS OF APPLICA-
BLE INSURANCE COVERAGE, THE CERTIFICATE SHALL CONTAIN A NOTICE ADVISING
S. 4280 4
THE GROUP MEMBERS THAT, IS THE MEMBER HAS OTHER INSURANCE COVERAGE,
SPECIFIED COVERAGES UNDER THE TRANSPORTATION NETWORK COMPANY GROUP POLI-
CY WILL BE EXCESS OVER THE OTHER INSURANCE.
(K) A GROUP POLICYHOLDER SHALL COMPLY WITH THE PROVISIONS OF SECTION
TWO THOUSAND ONE HUNDRED TWENTY-TWO OF THIS CHAPTER, IN THE SAME MANNER
AS AN AGENT OR BROKER, IN ANY ADVERTISEMENT, SIGN, PAMPHLET, CIRCULAR,
CARD, OR OTHER PUBLIC ANNOUNCEMENT REFERRING TO COVERAGE UNDER A TRANS-
PORTATION NETWORK COMPANY GROUP POLICY OR CERTIFICATE.
(L) A TRANSPORTATION NETWORK COMPANY GROUP POLICY SHALL NOT BE SUBJECT
TO SECTION THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OR SECTION THREE
THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS CHAPTER; PROVIDED THAT THE
FOLLOWING REQUIREMENTS SHALL APPLY WITH REGARD TO TERMINATION OF COVER-
AGE:
(1)(A) AN INSURER MAY TERMINATE A GROUP POLICY OR CERTIFICATE ONLY IF
CANCELLATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN SUBPAR-
AGRAPH (A) THROUGH (D) OR (F) THROUGH (H) OF PARAGRAPH ONE OF SUBSECTION
(C) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE;
PROVIDED, HOWEVER, THAT AN ACT OR OMISSION BY A GROUP MEMBER THAT WOULD
CONSTITUTE THE BASIS FOR CANCELLATION OF AN INDIVIDUAL CERTIFICATE SHALL
NOT CONSTITUTE THE BASIS FOR CANCELLATION OF THE GROUP POLICY.
(B) WHERE THE PREMIUM IS DERIVED WHOLLY FROM FUNDS CONTRIBUTED BY THE
GROUP POLICYHOLDER, AN INSURER MAY CANCEL AN INDIVIDUAL CERTIFICATE ONLY
IF CANCELLATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN
SUBPARAGRAPH (B), (C) OR (H) OF PARAGRAPH ONE OF SUBSECTION (C) OF
SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE.
(2) (A) AN INSURER'S CANCELLATION OF A GROUP POLICY, INCLUDING ALL
CERTIFICATES, SHALL NOT BECOME AFFECTIVE UNTIL THIRTY DAYS AFTER THE
INSURER MAILS OR DELIVERS WRITTEN NOTICE OF CANCELLATION TO THE GROUP
POLICYHOLDER AT THE MAILING ADDRESS SHOWN IN THE POLICY.
(I) WHERE ALL OR PART OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED
BY THE GROUP MEMBER SPECIFICALLY FOR THE COVERAGE, THE INSURER SHALL
ALSO MAIL OR DELIVER WRITTEN NOTICE OF CANCELLATION OF THE GROUP POLICY
TO THE GROUP MEMBER AT THE GROUP MEMBER'S MAILING ADDRESS.
(II) WHERE NONE OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED BY A
GROUP MEMBER SPECIFICALLY FOR THE COVERAGE, THE GROUP POLICY HOLDER
SHALL MAIL OR DELIVER WRITTEN NOTICE TO THE GROUP MEMBER ADVISING THE
GROUP MEMBER OF THE CANCELLATION OF THE GROUP POLICY AND THE EFFECTIVE
DATE OF CANCELLATION. THE GROUP POLICY HOLDER SHALL MAIL OR DELIVER THE
WRITTEN NOTICE WITHIN NINETY DAYS AFTER RECEIVING NOTICE OF CANCELLATION
FROM THE INSURER.
(B) AN INSURER'S CANCELLATION OF AN INDIVIDUAL CERTIFICATE SHALL NOT
BECOME EFFECTIVE UNTIL THIRTY DAYS AFTER THE INSURER MAILS OR DELIVERS
WRITTEN NOTICE OF CANCELLATION TO THE GROUP MEMBER AT THE GROUP MEMBER'S
MAILING ADDRESS AND TO THE GROUP POLICYHOLDER AT THE MAILING ADDRESS
SHOWN IN THE GROUP POLICY.
(C) (I) A GROUP POLICYHOLDER MAY CANCEL A GROUP POLICY, INCLUDING ALL
CERTIFICATES, OR ANY INDIVIDUAL CERTIFICATE, FOR A REASON UPON THIRTY
DAYS WRITTEN NOTICE TO THE INSURER AND EACH GROUP MEMBER; AND
(II) THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER WRITTEN NOTICE TO
EACH AFFECTED GROUP MEMBER OF THE GROUP POLICYHOLDER'S CANCELLATION OF
THE GROUP POLICY OR CERTIFICATE AND THE EFFECTIVE DATE OF CANCELLATION.
THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER THE WRITTEN NOTICE TO THE
GROUP MEMBER'S MAILING ADDRESS AT LEAST THIRTY DAYS PRIOR TO THE EFFEC-
TIVE DATE OF CANCELLATION.
S. 4280 5
(3) (A) UNLESS A GROUP POLICY PROVIDES FOR A LONGER POLICY PERIOD, THE
POLICY AND ALL CERTIFICATES SHALL BE ISSUED OR RENEWED FOR A ONE-YEAR
POLICY PERIOD.
(B) THE GROUP POLICYHOLDER SHALL BE ENTITLED TO RENEW THE GROUP POLICY
AND ALL CERTIFICATES UPON TIMELY PAYMENT OF THE PREMIUM BILLED TO THE
GROUP POLICYHOLDER FOR THE RENEWAL, UNLESS:
(I) THE INSURER MAILS OR DELIVERS TO THE GROUP POLICYHOLDER AND ALL
GROUP MEMBERS WRITTEN NOTICE OF NONRENEWAL, OR CONDITIONAL RENEWAL; AND
(II) THE INSURER MAILS OR DELIVERS THE WRITTEN NOTICE AT LEAST THIRTY,
BUT NOT MORE THAN ONE HUNDRED TWENTY DAYS PRIOR TO THE EXPIRATION DATE
SPECIFIED IN THE POLICY OR, IF NO DATE IS SPECIFIED, THE NEXT ANNIVER-
SARY DATE OF THE POLICY.
(4) WHERE THE GROUP POLICYHOLDER NONRENEWS THE GROUP POLICY, THE GROUP
POLICYHOLDER SHALL MAIL OR DELIVER WRITTEN NOTICE TO EACH GROUP MEMBER
ADVISING THE GROUP MEMBER OF NONRENEWAL OF THE GROUP POLICY AND THE
EFFECTIVE DATE OF NONRENEWAL. THE GROUP POLICYHOLDER SHALL MAIL OR
DELIVER WRITTEN NOTICE AT LEAST THIRTY DAYS PRIOR TO THE NONRENEWAL.
(5) EVERY NOTICE OF CANCELLATION, NONRENEWAL, OR CONDITIONAL RENEWAL
SHALL SET FORTH THE SPECIFIC REASON OR REASONS FOR CANCELLATION, NONRE-
NEWAL, OR CONDITIONAL RENEWAL.
(6) (A) AN INSURER SHALL NOT BE REQUIRED UNDER THIS SUBSECTION TO GIVE
NOTICE TO A GROUP MEMBER IF THE INSURER HAS BEEN ADVISED BY EITHER THE
GROUP POLICYHOLDER OR ANOTHER INSURER THAT SUBSTANTIALLY SIMILAR COVER-
AGE HAS BEEN OBTAINED FROM THE OTHER INSURER WITHOUT LAPSE OF COVERAGE.
(B) A GROUP POLICYHOLDER SHALL NOT BE REQUIRED UNDER THIS SUBSECTION
TO GIVE NOTICE TO A GROUP MEMBER IF SUBSTANTIALLY SIMILAR COVERAGE HAS
BEEN OBTAINED FROM ANOTHER INSURER WITHOUT LAPSE OF COVERAGE.
(7) (A) IF, PRIOR TO THE EFFECTIVE DATE OF CANCELLATION, NONRENEWAL,
OR CONDITIONAL RENEWAL OF THE GROUP POLICY, OR A CERTIFICATE, WHETHER
INITIATED BY THE INSURER, GROUP POLICYHOLDER OR BY THE GROUP MEMBER IN
REGARD TO THE GROUP MEMBER'S CERTIFICATE, COVERAGE ATTACHES PURSUANT TO
THE TERMS OF A GROUP POLICY, THEN THE COVERAGE SHALL BE EFFECTIVE UNTIL
EXPIRATION OF THE APPLICABLE PERIOD OF COVERAGE PROVIDED IN THE GROUP
POLICY NOTWITHSTANDING THE CANCELLATION, NONRENEWAL OR CONDITIONAL
NONRENEWAL OF THE GROUP POLICY.
(B) NOTWITHSTANDING SUBPARAGRAPH (A) OF THIS PARAGRAPH, AN INSURER MAY
TERMINATE COVERAGE UNDER AN INDIVIDUAL CERTIFICATE ON THE EFFECTIVE DATE
OF CANCELLATION, IF THE CERTIFICATE IS CANCELLED IN ACCORDANCE WITH THE
PROVISIONS OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION.
(M) ANY MAILING OR DELIVERY TO A GROUP MEMBER REQUIRED OR PERMITTED
UNDER THIS SECTION MAY BE MADE BY ELECTRONIC MAIL IF CONSENT TO SUCH
METHOD OF DELIVERY HAS BEEN PREVIOUSLY RECEIVED FROM SUCH GROUP MEMBER.
(N) FORMS AND RATES FOR ANY GROUP POLICY ISSUED OR ISSUED FOR DELIVERY
IN THIS STATE PURSUANT TO THIS SECTION SHALL BE FILED WITH THE SUPER-
INTENDENT IN ACCORDANCE WITH ARTICLE TWENTY-THREE OF THIS CHAPTER.
S 3. Section 121-e of the vehicle and traffic law, as added by chapter
15 of the laws of 1983, is amended to read as follows:
S 121-e. Livery. Every motor vehicle, other than a taxicab or a bus,
used in the business of transporting passengers for compensation. Howev-
er, it shall not include vehicles which are rented or leased without a
driver AND IT SHALL NOT INCLUDE TRANSPORTATION NETWORK VEHICLES AS
DEFINED IN SUBDIVISION EIGHT OF SECTION TWO THOUSAND TWO HUNDRED ONE OF
THIS CHAPTER.
S 4. Section 148-a of the vehicle and traffic law, as amended by chap-
ter 15 of the laws of 1983, is amended to read as follows:
S. 4280 6
S 148-a. Taxicab. Every motor vehicle, other than a bus, used in the
business of transporting passengers for compensation, and operated in
such business under a license or permit issued by a local authority.
However, it shall not include vehicles which are rented or leased with-
out a driver AND IT SHALL NOT INCLUDE TRANSPORTATION NETWORK VEHICLES AS
DEFINED IN SUBDIVISION EIGHT OF SECTION TWO THOUSAND TWO HUNDRED ONE OF
THIS CHAPTER.
S 5. The opening paragraph of subdivision 7 of section 401 of the
vehicle and traffic law, as amended by chapter 55 of the laws of 1992,
is amended to read as follows:
FOR PURPOSES OF THIS SUBDIVISION A MOTOR VEHICLE THAT MEETS THE DEFI-
NITION OF A TRANSPORTATION NETWORK VEHICLE AS DEFINED IN SUBDIVISION
EIGHT OF SECTION TWO THOUSAND TWO HUNDRED ONE OF THIS CHAPTER SHALL NOT
BE REQUIRED TO OBTAIN A FOR HIRE OR COMMERCIAL VEHICLE REGISTRATION. The
registration fees to be paid upon the registration or reregistration, in
accordance with the provisions of this article, of buses, of motor vehi-
cles constructed or specially equipped for the transportation of goods,
wares and merchandise, commonly known as auto trucks or light delivery
cars, of taxicabs, livery and of certain other motor vehicles specified
herein are hereby established as follows:
S 6. Paragraph c of subdivision 1 of section 498 of the vehicle and
traffic law, as added by chapter 549 of the laws of 2006, is amended to
read as follows:
c. "Pre-arranged for-hire vehicle" shall mean a motor vehicle, other
than a bus, that is used in the business of transporting passengers for
compensation on a pre-arranged basis, and operated in such business
under a license or permit issued by a licensing jurisdiction, EXCEPT
THAT IT SHALL NOT MEAN A MOTOR VEHICLE THAT MEETS THE DEFINITION OF A
TRANSPORTATION NETWORK VEHICLE AS DEFINED IN SUBDIVISION EIGHT OF
SECTION TWO THOUSAND TWO HUNDRED ONE OF THIS CHAPTER. The term "pre-ar-
ranged for-hire vehicle" shall apply to vehicles as defined herein
regardless of any other provision of local law or rule defining or
describing such vehicles by any other terms such as livery, black car,
or luxury limousine.
S 7. Section 181 of the general municipal law is amended by adding a
new closing paragraph to read as follows:
FOR THE PURPOSES OF THIS SECTION, THE TERMS TAXICABS, LIMOUSINES OR
LIVERY VEHICLES SHALL NOT INCLUDE MOTOR VEHICLES THAT MEET THE DEFI-
NITION OF A TRANSPORTATION NETWORK VEHICLE AS DEFINED IN SUBDIVISION
EIGHT OF SECTION TWO THOUSAND TWO HUNDRED ONE OF THE VEHICLE AND TRAFFIC
LAW.
S 8. Section 151 of the transportation law is amended by adding a new
subdivision 13 to read as follows:
13. IN A VEHICLE THAT MEETS THE DEFINITION OF A TRANSPORTATION NETWORK
VEHICLE AS DEFINED IN SUBDIVISION EIGHT OF SECTION TWO THOUSAND TWO
HUNDRED ONE OF THE VEHICLE AND TRAFFIC LAW.
S 9. The vehicle and traffic law is amended by adding a new title 10-a
to read as follows:
TITLE X-A
TRANSPORTATION NETWORK COMPANIES
ARTICLE 46-A. TRANSPORTATION NETWORK COMPANIES.
ARTICLE 46-A
TRANSPORTATION NETWORK COMPANIES
SECTION 2200. SHORT TITLE.
2201. DEFINITIONS.
2202. REGULATION OF TRANSPORTATION NETWORK COMPANIES.
S. 4280 7
2203. REGISTRATION, FINANCIAL RESPONSIBILITY OF TRANSPORTATION
NETWORK COMPANIES, AND INSURANCE.
2204. OPERATIONAL REQUIREMENTS OF TRANSPORTATION NETWORK COMPA-
NIES.
2205. TRANSPORTATION NETWORK SERVICE LIMITATIONS.
2206. VEHICLE REQUIREMENTS FOR TRANSPORTATION NETWORK VEHICLES.
2207. PERMIT REQUIRED FOR TRANSPORTATION NETWORK COMPANIES,
PENALTY FOR VIOLATION, AND RULES.
2208. DRIVER LICENSING REQUIREMENT.
2209. DISTRIBUTION OF FEES AND PENALTIES.
2210. RULES AND INSPECTIONS.
S 2200. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "TRANSPORTATION NETWORK COMPANY ACT".
S 2201. DEFINITIONS. WHEN USED IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
1. "PERSONAL VEHICLE" MEANS A MOTOR VEHICLE THAT IS USED BY A TRANS-
PORTATION NETWORK DRIVER IN CONNECTION WITH PROVIDING SERVICES FOR A
TRANSPORTATION NETWORK COMPANY THAT MEETS THE MOTOR VEHICLE CRITERIA SET
FORTH IN THIS ARTICLE AND IS REGISTERED TO THE TRANSPORTATION NETWORK
DRIVER.
2. "PREARRANGED RIDE" MEANS A PERIOD OF TIME THAT BEGINS WHEN A TRANS-
PORTATION NETWORK DRIVER ACCEPTS A REQUESTED RIDE THROUGH A DIGITAL
NETWORK, CONTINUES WHILE THE TRANSPORTATION NETWORK DRIVER TRANSPORTS
THE TRANSPORTATION NETWORK RIDER, AND ENDS WHEN THE TRANSPORTATION
NETWORK RIDER DEPARTS FROM THE TRANSPORTATION NETWORK VEHICLE.
3. "SERIOUS CRIMINAL OFFENSE" SHALL MEAN A CONVICTION OF (I) A FELONY
INVOLVING THE USE OF A MOTOR VEHICLE; (II) A FELONY INVOLVING MANUFAC-
TURING, DISTRIBUTING OR DISPENSING A DRUG AS DEFINED IN SECTION ONE
HUNDRED FOURTEEN-A OF THIS CHAPTER OR POSSESSION OF ANY SUCH DRUG WITH
INTENT TO MANUFACTURE, DISTRIBUTE OR DISPENSE SUCH DRUG IN WHICH A MOTOR
VEHICLE WAS USED; (III) A VIOLATION OF SUBDIVISION ONE OR TWO OF SECTION
SIX HUNDRED OF THIS CHAPTER; (IV) OPERATING A MOTOR VEHICLE WHEN, AS A
RESULT OF PRIOR VIOLATIONS COMMITTED WHILE OPERATING A MOTOR VEHICLE,
THE INDIVIDUAL'S DRIVER'S LICENSE IS REVOKED, SUSPENDED, OR CANCELED;
(V) CAUSING A FATALITY THROUGH THE NEGLIGENT OPERATION OF A MOTOR VEHI-
CLE, INCLUDING BUT NOT LIMITED TO THE CRIMES OF VEHICULAR MANSLAUGHTER
OR CRIMINALLY NEGLIGENT HOMICIDE; (VI) HOMICIDE; AND (VII) A FELONY OR
ASSAULT, SEXUAL OFFENSES, KIDNAPPING, OR BURGLARY.
4. "TRANSPORTATION NETWORK COMPANY" MEANS A CORPORATION, PARTNERSHIP,
SOLE PROPRIETORSHIP, OR OTHER ENTITY, OPERATING IN NEW YORK, THAT USES A
DIGITAL NETWORK TO CONNECT TRANSPORTATION NETWORK DRIVERS TO TRANSPORTA-
TION NETWORK RIDERS FOR THE PURPOSE OF PROVIDING TRANSPORTATION. A
TRANSPORTATION NETWORK COMPANY IS NOT DEEMED TO OWN, CONTROL, OPERATE,
OR MANAGE THE PERSONAL VEHICLES USED BY TRANSPORTATION NETWORK DRIVERS.
5. "TRANSPORTATION NETWORK DRIVER" MEANS AN INDIVIDUAL WHO USES HIS OR
HER PERSONAL VEHICLE TO PROVIDE TRANSPORTATION NETWORK SERVICES FOR
RIDERS MATCHED THROUGH A TRANSPORTATION NETWORK COMPANY'S DIGITAL
NETWORK.
6. "TRANSPORTATION NETWORK RIDER" MEANS A PASSENGER IN A NETWORK
TRANSPORTATION VEHICLE FOR WHOM TRANSPORT IS PROVIDED, INCLUDING:
(A) AN INDIVIDUAL WHO USES A TRANSPORTATION NETWORK COMPANY'S ONLINE
APPLICATION OR DIGITAL NETWORK TO CONNECT WITH A TRANSPORTATION NETWORK
DRIVER TO OBTAIN TRANSPORTATION NETWORK SERVICES IN A TRANSPORTATION
NETWORK VEHICLE FOR THE INDIVIDUAL AND ANYONE IN THE INDIVIDUAL'S PARTY;
OR
S. 4280 8
(B) ANYONE FOR WHOM ANOTHER INDIVIDUAL USES A TRANSPORTATION NETWORK
COMPANY'S ONLINE APPLICATION OR DIGITAL NETWORK TO OBTAIN TRANSPORTATION
NETWORK SERVICES IN A TRANSPORTATION NETWORK VEHICLE.
7. "TRANSPORTATION NETWORK SERVICES" MEANS THE PROVISION OF TRANSPOR-
TATION BY A TRANSPORTATION NETWORK DRIVER TO A TRANSPORTATION NETWORK
RIDER WITH WHOM THE TRANSPORTATION NETWORK DRIVER IS MATCHED THROUGH A
TRANSPORTATION NETWORK COMPANY. THE TERM DOES NOT INCLUDE SERVICES
PROVIDED EITHER DIRECTLY BY OR UNDER CONTRACT WITH A POLITICAL SUBDIVI-
SION OR OTHER ENTITY EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 115 OF
THE FEDERAL "INTERNAL REVENUE CODE OF 1986", AS AMENDED.
8. "TRANSPORTATION NETWORK VEHICLE" MEANS A MOTOR VEHICLE USED BY A
TRANSPORTATION NETWORK DRIVER THAT IS HIS OR HER OWN PERSONAL MOTOR
VEHICLE AND ALSO USED TO PROVIDE A PREARRANGED RIDE FOR TRANSPORTATION
NETWORK RIDERS MATCHED THROUGH A TRANSPORTATION NETWORK COMPANY'S
DIGITAL NETWORK. A TRANSPORTATION NETWORK VEHICLE IS NOT A TAXICAB, AS
DEFINED IN SECTION ONE HUNDRED FORTY-EIGHT-A OF THIS CHAPTER, OR A
LIVERY AS DEFINED IN SECTION ONE HUNDRED TWENTY-ONE-E OF THIS CHAPTER.
S 2202. REGULATION OF TRANSPORTATION NETWORK COMPANIES.
1. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, TRANSPORTATION NETWORK
COMPANIES ARE GOVERNED EXCLUSIVELY BY THIS ARTICLE.
2. THE PROVISIONS OF SECTIONS NINETY-SIX, NINETY-EIGHT, NINETY-NINE,
ONE HUNDRED THREE, ONE HUNDRED SIXTEEN, ONE HUNDRED FORTY, ONE HUNDRED
FORTY-TWO, ONE HUNDRED FORTY-THREE, ONE HUNDRED FIFTY-TWO, ONE HUNDRED
FIFTY-SIX, ONE HUNDRED FIFTY-SEVEN, AND ONE HUNDRED FIFTY-EIGHT OF THE
TRANSPORTATION LAW, AND 17 NYCRR PT. 720, 17 NYCRR PT. 721, 17 NYCRR PT.
730, AND 17 NYCRR PT. 741, SHALL NOT APPLY TO TRANSPORTATION NETWORK
VEHICLES.
3. THE PROVISIONS OF SUBPARAGRAPH (V) OF PARAGRAPH (A) OF SUBDIVISION
TWO OF SECTION FIVE HUNDRED ONE OF THIS CHAPTER SHALL NOT APPLY TO
TRANSPORTATION NETWORK COMPANIES OR TRANSPORTATION NETWORK DRIVERS.
S 2203. REGISTRATION, FINANCIAL RESPONSIBILITY OF TRANSPORTATION
NETWORK COMPANIES, AND INSURANCE.
1. A TRANSPORTATION NETWORK COMPANY SHALL OBTAIN AUTHORIZATION TO DO
BUSINESS IN NEW YORK AS REQUIRED BY SECTION ONE THOUSAND THREE HUNDRED
ONE OF THE BUSINESS CORPORATION LAW.
2. A TRANSPORTATION NETWORK COMPANY SHALL FILE WITH THE COMMISSIONER
OF MOTOR VEHICLES DOCUMENTATION EVIDENCING THAT THE TRANSPORTATION
NETWORK COMPANY OR THE TRANSPORTATION NETWORK DRIVER HAS SECURED PRIMARY
LIABILITY INSURANCE COVERAGE FOR THE DRIVER FOR INCIDENTS INVOLVING THE
DRIVER DURING A PREARRANGED RIDE INCLUDING, BUT NOT LIMITED TO, A GROUP
TRANSPORTATION NETWORK COMPANY POLICY AUTHORIZED PURSUANT TO SECTION
THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THE INSURANCE LAW. COVERAGE
FOR INCIDENTS INVOLVING A DRIVER DURING A PREARRANGED RIDE MUST BE IN
THE AMOUNT OF AT LEAST ONE MILLION DOLLARS PER OCCURRENCE. THE INSURANCE
POLICY MUST PROVIDE COVERAGE AT ALL TIMES THE DRIVER IS ENGAGED IN A
PREARRANGED RIDE. THE INSURANCE POLICY MUST ALSO PROVIDE FOR THE PAYMENT
OF FIRST PARTY BENEFITS PURSUANT TO ARTICLE FIFTY-ONE OF THE INSURANCE
LAW AND BENEFITS IN ACCORDANCE WITH SECTION THREE THOUSAND FOUR HUNDRED
TWENTY OF THE INSURANCE LAW. SUCH COVERAGE MAY BE PROVIDED IN ONE GROUP
POLICY OR SEPARATE GROUP POLICIES.
S 2204. OPERATIONAL REQUIREMENTS OF TRANSPORTATION NETWORK COMPANIES.
1. THE FOLLOWING REQUIREMENTS APPLY TO THE PROVISION OF TRANSPORTATION
NETWORK SERVICES:
(A) A TRANSPORTATION NETWORK COMPANY SHALL PROVIDE TRANSPORTATION
NETWORK SERVICES TO THE PUBLIC IN A NONDISCRIMINATORY MANNER, REGARDLESS
OF GEOGRAPHIC LOCATION OF THE DEPARTURE POINT OR DESTINATION, ONCE THE
S. 4280 9
DRIVER AND RIDER HAVE BEEN MATCHED THROUGH THE DIGITAL NETWORK, AS
REQUIRED BY SECTION ONE HUNDRED SIX OF THE TRANSPORTATION LAW.
(B) A TRANSPORTATION NETWORK COMPANY SHALL NOT IMPOSE ADDITIONAL
CHARGES FOR PROVIDING TRANSPORTATION NETWORK SERVICES TO PERSONS WITH
PHYSICAL OR MENTAL DISABILITIES BECAUSE OF THOSE DISABILITIES AND SHALL
REQUIRE TRANSPORTATION NETWORK DRIVERS TO PERMIT A SERVICE ANIMAL TO
ACCOMPANY A TRANSPORTATION NETWORK RIDER ON A PREARRANGED RIDE UNLESS
THE PRESENCE OF A SERVICE ANIMAL WOULD SIGNIFICANTLY COMPROMISE THE
HEALTH OF THE TRANSPORTATION NETWORK DRIVER DUE TO A MEDICALLY DIAGNOSED
ALLERGY. IF A TRANSPORTATION NETWORK RIDER WITH PHYSICAL OR MENTAL DISA-
BILITIES REQUIRES THE USE OF THE TRANSPORTATION NETWORK RIDER'S MOBILITY
EQUIPMENT, A TRANSPORTATION NETWORK COMPANY SHALL REQUIRE TRANSPORTATION
NETWORK DRIVERS TO STORE THE MOBILITY EQUIPMENT IN THE TRANSPORTATION
NETWORK VEHICLE DURING A PREARRANGED RIDE IF THE TRANSPORTATION NETWORK
VEHICLE IS REASONABLY CAPABLE OF STORING THE MOBILITY EQUIPMENT. IF THE
TRANSPORTATION NETWORK DRIVER IS UNABLE TO STORE A TRANSPORTATION
NETWORK RIDER'S MOBILITY EQUIPMENT IN THE TRANSPORTATION NETWORK VEHI-
CLE, THE TRANSPORTATION NETWORK DRIVER SHALL REFER THE TRANSPORTATION
NETWORK RIDER TO ANOTHER TRANSPORTATION NETWORK DRIVER OR TRANSPORTATION
SERVICE PROVIDER WITH A VEHICLE THAT IS EQUIPPED TO ACCOMMODATE THE
RIDER'S MOBILITY EQUIPMENT.
(C) A TRANSPORTATION NETWORK COMPANY IS NOT LIABLE FOR A TRANSPORTA-
TION NETWORK DRIVER'S VIOLATION OF PARAGRAPH (B) OF THIS SUBDIVISION
UNLESS THE TRANSPORTATION NETWORK DRIVER'S VIOLATION HAS BEEN PREVIOUSLY
REPORTED TO THE TRANSPORTATION NETWORK COMPANY IN WRITING, AND THE
TRANSPORTATION NETWORK COMPANY HAS FAILED TO REASONABLY ADDRESS THE
ALLEGED VIOLATION. THE COMMISSIONER SHALL AFFORD A TRANSPORTATION
NETWORK COMPANY THE SAME DUE PROCESS RIGHTS AFFORDED TRANSPORTATION
PROVIDERS IN DEFENDING AGAINST CIVIL PENALTIES ASSESSED BY THE COMMIS-
SIONER OF MOTOR VEHICLES.
(D) ALTHOUGH TRANSPORTATION NETWORK COMPANIES MAY PROVIDE PLATFORMS
ALLOWING DRIVERS AND PASSENGERS TO "RATE" EACH OTHER, A TRANSPORTATION
NETWORK COMPANY SHALL USE REASONABLE EFFORTS TO ENSURE THAT SUCH RATINGS
ARE NOT BASED ON UNLAWFUL DISCRIMINATION.
(E) A TRANSPORTATION NETWORK COMPANY SHALL MAKE AVAILABLE TO PROSPEC-
TIVE TRANSPORTATION NETWORK RIDERS AN EXPLANATION OF THE METHOD BY WHICH
THE TRANSPORTATION NETWORK COMPANY CALCULATES FARES AND THE OPTION TO
DETERMINE AN ESTIMATED FARE ON ITS DIGITAL NETWORK OR WEBSITE.
(F) UPON COMPLETION OF A PREARRANGED RIDE, A TRANSPORTATION NETWORK
COMPANY SHALL TRANSMIT TO THE TRANSPORTATION NETWORK RIDER AN ELECTRONIC
RECEIPT DOCUMENTING: (I) THE POINT OF ORIGIN AND DESTINATION OF THE
PREARRANGED RIDE; (II) THE TOTAL DURATION AND DISTANCE OF THE PREAR-
RANGED RIDE; (III) THE TOTAL FARE PAID, INCLUDING THE BASE FARE AND ANY
ADDITIONAL CHARGES INCURRED FOR DISTANCE TRAVELED OR DURATION OF THE
PREARRANGED RIDE; AND (IV) THE DRIVER'S FIRST NAME.
(G) A TRANSPORTATION NETWORK COMPANY SHALL MAKE AVAILABLE TO ALL
TRANSPORTATION NETWORK RIDERS A CUSTOMER SUPPORT CONTACT ON ITS DIGITAL
NETWORK OR WEBSITE FOR TRANSPORTATION NETWORK RIDER INQUIRIES.
(H) BEFORE PERMITTING A PERSON TO ACT AS A TRANSPORTATION NETWORK
DRIVER, A TRANSPORTATION NETWORK COMPANY SHALL CONFIRM THAT THE PERSON
IS AT LEAST TWENTY-ONE YEARS OF AGE AND POSSESSES: (I) A VALID DRIVER'S
LICENSE; (II) PROOF OF AUTOMOBILE INSURANCE; AND (III) PROOF OF A NEW
YORK VEHICLE REGISTRATION;
(I) BEFORE PERMITTING A PERSON TO ACT AS A TRANSPORTATION NETWORK
DRIVER, A TRANSPORTATION NETWORK COMPANY SHALL REQUIRE EACH TRANSPORTA-
TION NETWORK DRIVER TO WEAR A SAFETY BELT WHILE PERFORMING TRANSPORTA-
S. 4280 10
TION NETWORK SERVICES. THE TRANSPORTATION NETWORK COMPANY SHALL ESTAB-
LISH A DRIVER TRAINING PROGRAM FOR ALL TRANSPORTATION NETWORK DRIVERS
CONCERNING SAFETY AND PROPER OPERATION OF A TRANSPORTATION NETWORK VEHI-
CLE PRIOR TO THE DRIVER BEING ABLE TO OFFER SERVICE.
(J) BEFORE PERMITTING A PERSON TO ACT AS A TRANSPORTATION NETWORK
DRIVER, A TRANSPORTATION NETWORK COMPANY SHALL OBTAIN THE PROSPECTIVE
TRANSPORTATION NETWORK DRIVER'S CRIMINAL HISTORY FROM THE DEPARTMENT OF
CRIMINAL JUSTICE SERVICES OR AN EQUIVALENT CRIMINAL HISTORY FROM A THIRD
PARTY PROVIDER. A TRANSPORTATION COMPANY SHALL NOT PERMIT AN INDIVIDUAL
TO PROVIDE TRANSPORTATION NETWORK SERVICES AS A TRANSPORTATION NETWORK
DRIVER IF THE INDIVIDUAL HAS BEEN CONVICTED OF A SERIOUS CRIMINAL
OFFENSE.
(K) A TRANSPORTATION NETWORK COMPANY SHALL REQUIRE ALL TRANSPORTATION
NETWORK DRIVERS TO REPORT ANY CRIMINAL CONVICTIONS IMMEDIATELY AND SHALL
NO LONGER PERMIT A TRANSPORTATION NETWORK DRIVER TO PROVIDE TRANSPORTA-
TION NETWORK SERVICES IF THE TRANSPORTATION NETWORK COMPANY BECOMES
AWARE THAT THE SUBJECT TRANSPORTATION NETWORK DRIVER HAS BEEN CONVICTED
OF A SERIOUS CRIMINAL OFFENSE.
(L) BEFORE PERMITTING A PERSON TO ACT AS A TRANSPORTATION NETWORK
DRIVER, A TRANSPORTATION NETWORK COMPANY SHALL CONDUCT A REVIEW OF THE
DRIVING RECORD OF EVERY PROSPECTIVE TRANSPORTATION NETWORK DRIVER AND
SHALL NOT PERMIT AN INDIVIDUAL TO BECOME A TRANSPORTATION NETWORK DRIVER
IF SUCH INDIVIDUAL HAS MORE THAN THREE MOVING VIOLATIONS WITHIN THE
TWELVE MONTH PERIOD PRIOR TO PROVIDING TRANSPORTATION NETWORK SERVICES
AS A TRANSPORTATION NETWORK DRIVER.
(M) A TRANSPORTATION NETWORK COMPANY SHALL INSTITUTE A ZERO TOLERANCE
INTOXICATING SUBSTANCE POLICY WITH RESPECT TO TRANSPORTATION NETWORK
DRIVERS AS FOLLOWS: (I) THE TRANSPORTATION NETWORK COMPANY SHALL INCLUDE
ON ITS WEBSITE, MOBILE APPLICATION AND TRANSPORTATION NETWORK RIDERS'
RECEIPTS A NOTICE CONCERNING THE TRANSPORTATION NETWORK COMPANY'S ZERO-
TOLERANCE POLICY AND THE METHODS TO REPORT A DRIVER WHOM THE RIDER
REASONABLY SUSPECTS WAS UNDER THE INFLUENCE OF DRUGS OR ALCOHOL DURING
THE COURSE OF THE TRANSPORTATION NETWORK RIDE; AND (II) PROMPTLY AFTER A
ZERO-TOLERANCE COMPLAINT IS FILED, THE TRANSPORTATION NETWORK COMPANY
SHALL SUSPEND THE TRANSPORTATION NETWORK DRIVER FOR FURTHER INVESTI-
GATION.
(N) A TRANSPORTATION NETWORK COMPANY SHALL REQUIRE THAT EACH TRANSPOR-
TATION NETWORK VEHICLE DISPLAYS A MARKING THAT IDENTIFIES THE VEHICLE AS
A TRANSPORTATION NETWORK VEHICLE THAT IS VISIBLE FROM THE EXTERIOR OF
THE VEHICLE AT ALL TIMES DURING WHICH THE VEHICLE IS BEING USED AS A
TRANSPORTATION NETWORK VEHICLE. THE MOBILE PHONE APPLICATION USED BY A
TRANSPORTATION NETWORK COMPANY TO CONNECT DRIVERS AND RIDERS MUST
DISPLAY FOR THE TRANSPORTATION NETWORK RIDER: A PICTURE OF THE TRANSPOR-
TATION NETWORK DRIVER AND A PICTURE OF THE TRANSPORTATION NETWORK VEHI-
CLE THE TRANSPORTATION NETWORK DRIVER IS APPROVED TO USE, INCLUDING THE
LICENSE PLATE NUMBER TO IDENTIFY THE TRANSPORTATION NETWORK VEHICLE.
(O) A TRANSPORTATION NETWORK COMPANY SHALL NOT PERMIT A TRANSPORTATION
NETWORK DRIVER TO OFFER OR PROVIDE TRANSPORTATION NETWORK SERVICES FOR
MORE THAN TWELVE CONSECUTIVE HOURS.
(P) A TRANSPORTATION NETWORK COMPANY SHALL IMPLEMENT AN INTOXICATING
SUBSTANCE POLICY FOR TRANSPORTATION NETWORK DRIVERS THAT DISALLOWS ANY
AMOUNT OF INTOXICATION OF THE TRANSPORTATION NETWORK DRIVER WHILE
PROVIDING TRANSPORTATION NETWORK SERVICES. THE TRANSPORTATION NETWORK
COMPANY SHALL INCLUDE ON ITS WEBSITE AND MOBILE DEVICE APPLICATION SOFT-
WARE A NOTICE CONCERNING THE TRANSPORTATION NETWORK COMPANY'S INTOXICAT-
ING SUBSTANCE POLICY.
S. 4280 11
(Q) A TRANSPORTATION NETWORK COMPANY SHALL MAKE THE FOLLOWING DISCLO-
SURE TO A PROSPECTIVE TRANSPORTATION NETWORK DRIVER IN THE PROSPECTIVE
TRANSPORTATION NETWORK DRIVER'S TERMS OF SERVICE:
WHILE OPERATING ON THE TRANSPORTATION NETWORK COMPANY'S DIGITAL
NETWORK, YOUR PERSONAL AUTOMOBILE INSURANCE MIGHT NOT AFFORD LIABILITY
COVERAGE, DEPENDING ON THE POLICY'S TERMS.
(R) A TRANSPORTATION NETWORK COMPANY SHALL MAKE THE FOLLOWING DISCLO-
SURE THAT IS PLACED PROMINENTLY IN THE PROSPECTIVE TRANSPORTATION
NETWORK DRIVER'S WRITTEN TERMS OF SERVICE:
IF THE VEHICLE THAT YOU PLAN TO USE TO PROVIDE TRANSPORTATION NETWORK
SERVICES FOR OUR TRANSPORTATION NETWORK COMPANY HAS A LIEN AGAINST IT,
YOU MUST NOTIFY THE LIENHOLDER THAT YOU WILL BE USING THE VEHICLE FOR
TRANSPORTATION NETWORK SERVICES THAT MAY VIOLATE THE TERMS OF YOUR
CONTRACT WITH THE LIENHOLDER.
(S) OTHER THAN THE DISCLOSURE OF AGGREGATED USER DATA AND OTHER INFOR-
MATION ABOUT TRANSPORTATION NETWORK USERS THAT IS NOT PERSONALLY IDEN-
TIFIABLE, A TRANSPORTATION NETWORK COMPANY SHALL NOT DISCLOSE TO A THIRD
PARTY ANY PERSONALLY IDENTIFIABLE INFORMATION CONCERNING A USER OF THE
TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK UNLESS: (I) THE TRANS-
PORTATION NETWORK COMPANY OBTAINS THE USER'S CONSENT TO DISCLOSE
PERSONALLY IDENTIFIABLE INFORMATION; (II) DISCLOSURE IS NECESSARY TO
COMPLY WITH A LEGAL OBLIGATION; OR (III) DISCLOSURE IS NECESSARY TO
PROTECT OR DEFEND THE TERMS AND CONDITIONS FOR USE OF THE SERVICE OR TO
INVESTIGATE VIOLATIONS OF THE TERMS AND CONDITIONS.
2. IF ANY PERSON FILES A COMPLAINT WITH THE COMMISSIONER OF MOTOR
VEHICLES AGAINST A TRANSPORTATION NETWORK COMPANY OR TRANSPORTATION
NETWORK DRIVER, THE COMMISSIONER MAY INSPECT THE TRANSPORTATION NETWORK
COMPANY'S RECORDS AS REASONABLY NECESSARY TO INVESTIGATE AND RESOLVE THE
COMPLAINT.
S 2205. TRANSPORTATION NETWORK SERVICE LIMITATIONS. A TRANSPORTATION
NETWORK DRIVER SHALL NOT PROVIDE TRANSPORTATION NETWORK SERVICES UNLESS
A TRANSPORTATION NETWORK COMPANY HAS MATCHED THE TRANSPORTATION NETWORK
DRIVER TO A TRANSPORTATION NETWORK RIDER THROUGH A DIGITAL NETWORK. A
TRANSPORTATION NETWORK DRIVER SHALL NOT SOLICIT OR ACCEPT THE ON-DEMAND
SUMMONING OF A RIDE, OTHERWISE KNOWN AS A "STREET HAIL".
S 2206. VEHICLE REQUIREMENTS FOR TRANSPORTATION NETWORK VEHICLES.
1. THE FOLLOWING REQUIREMENTS APPLY TO THE TRANSPORTATION NETWORK
VEHICLES:
(A) A TRANSPORTATION NETWORK VEHICLE MUST HAVE AT LEAST FOUR DOORS AND
BE DESIGNED TO CARRY NO MORE THAN EIGHT PASSENGERS, INCLUDING THE TRANS-
PORTATION NETWORK DRIVER.
(B) A TRANSPORTATION NETWORK VEHICLE SHALL DISPLAY THE NAME OR LOGO OF
THE TRANSPORTATION NETWORK COMPANY AFFIXED TO THE WINDSHIELD IN A FORM
AND MANNER THAT IS VISIBLE FROM THE EXTERIOR OF THE VEHICLE.
(C) EACH TRANSPORTATION NETWORK VEHICLE MUST BE INSPECTED NO LESS
FREQUENTLY THAN EVERY TWELVE MONTHS BY AN OFFICIAL INSPECTION STATION
LICENSED PURSUANT TO SECTION THREE HUNDRED THREE OF THIS CHAPTER, OR, IF
THE TRANSPORTATION NETWORK VEHICLE IS REGISTERED IN ANOTHER STATE, BY
THE AGENCY RESPONSIBLE FOR VEHICLE REGISTRATION AND INSPECTION IN THAT
STATE, AND EACH TRANSPORTATION NETWORK VEHICLE MUST DISPLAY A VALID
INSPECTION STICKER INDICATING THE DATE OF THE LAST INSPECTION AND/OR THE
EXPIRATION DATE, IF SUCH STICKERS ARE ISSUED BY THE STATE OF REGISTRA-
TION.
S 2207. PERMIT REQUIRED FOR TRANSPORTATION NETWORK COMPANIES, PENALTY
FOR VIOLATION, AND RULES.
S. 4280 12
1. A PERSON SHALL NOT OPERATE A TRANSPORTATION NETWORK COMPANY IN NEW
YORK WITHOUT FIRST HAVING OBTAINED A PERMIT FROM THE COMMISSIONER OF
MOTOR VEHICLES.
2. THE COMMISSIONER OF MOTOR VEHICLES SHALL ISSUE A PERMIT TO EACH
TRANSPORTATION NETWORK COMPANY THAT MEETS THE REQUIREMENTS OF THIS ARTI-
CLE AND PAYS AN ANNUAL PERMIT FEE.
3. THE ANNUAL PERMIT FEE SHALL BE ESTABLISHED AND LEVIED BY THE
COMMISSIONER OF MOTOR VEHICLES SUBJECT TO THE APPROVAL OF THE DIRECTOR
OF THE DIVISION OF THE BUDGET IN AN AMOUNT THAT IS REASONABLY SUFFICIENT
TO RAISE FUNDS TO DEFRAY THE EXPENSES OF THE DEPARTMENT IN ADMINISTERING
AND ENFORCING THIS ARTICLE. THE COMMISSIONER MAY PROMULGATE THE RULES
AND REGULATIONS NECESSARY TO ADMINISTER THE ANNUAL PERMIT FEE.
4. THE COMMISSIONER OF MOTOR VEHICLES SHALL DETERMINE A REASONABLE
FORM AND MANNER OF APPLICATION FOR A TRANSPORTATION NETWORK COMPANY
PERMIT.
5. A PERMIT MAY BE SUSPENDED BY THE COMMISSIONER OF MOTOR VEHICLES FOR
FAILURE TO COMPLY WITH THE INSURANCE, REPORTING, OR SAFETY REQUIREMENTS
OF THIS ARTICLE. ANY SUCH PERMIT MAY THEREAFTER BE REVOKED IN NO LESS
THAN THIRTY DAYS AFTER THE DATE OF SUSPENSION ORDERED BY THE COMMISSION-
ER OF MOTOR VEHICLES IF THE CARRIER DOES NOT COMPLY WITH THE RATE,
INSURANCE, ANNUAL REPORTING, OR SAFETY REQUIREMENTS OF THIS ARTICLE.
6. FOR A VIOLATION OF THIS ARTICLE OR A FAILURE TO COMPLY WITH A
COMMISSIONER OF MOTOR VEHICLES ORDER, DECISION, OR RULE ISSUED UNDER
THIS ARTICLE, A TRANSPORTATION NETWORK COMPANY IS SUBJECT TO THE COMMIS-
SIONER'S AUTHORITY UNDER THIS CHAPTER.
7. THE COMMISSIONER OF MOTOR VEHICLES MAY DENY AN APPLICATION UNDER
THIS ARTICLE OR REFUSE TO RENEW THE PERMIT OF A TRANSPORTATION NETWORK
COMPANY BASED ON A DETERMINATION THAT THE TRANSPORTATION NETWORK COMPANY
HAS NOT SATISFIED A CIVIL PENALTY ARISING OUT OF AN ADMINISTRATIVE OR
ENFORCEMENT ACTION BROUGHT BY THE COMMISSIONER.
S 2208. DRIVER LICENSING REQUIREMENT. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, A CLASS D DRIVER'S LICENSE SHALL BE VALID FOR THE
PERFORMANCE OF TRANSPORTATION NETWORK SERVICES BY A TRANSPORTATION
NETWORK DRIVER.
S 2209. DISTRIBUTION OF FEES AND PENALTIES. ALL PERMIT FEES CHARGED
AND COLLECTED BY THE COMMISSIONER UNDER THIS ARTICLE SHALL BE DEPOSITED
BY THE COMPTROLLER INTO THE SPECIAL OBLIGATION RESERVE AND PAYMENT
ACCOUNT OF THE HIGHWAY AND BRIDGE TRUST FUND ESTABLISHED PURSUANT TO
SECTION EIGHTY-NINE-B OF THE STATE FINANCE LAW. ALL MONEYS RECOVERED IN
AN ACTION TO RECOVER A PENALTY OR FORFEITURE SHALL BE PAID INTO THE
STATE TREASURY TO THE CREDIT OF THE GENERAL FUND.
S 2210. RULES AND INSPECTIONS.
1. THE COMMISSIONER MAY PROMULGATE RULES CONSISTENT WITH THIS ARTICLE,
INCLUDING RULES CONCERNING ADMINISTRATION, FEES, AND SAFETY REQUIREMENTS
SO LONG AS THOSE RULES DO NOT EXPAND THE SUBSTANTIVE REQUIREMENTS OF
THIS ARTICLE.
2. THE COMMISSIONER MAY PROMULGATE RULES REQUIRING A TRANSPORTATION
NETWORK COMPANY TO MAINTAIN AND FILE WITH THE COMMISSIONER EVIDENCE OF
FINANCIAL RESPONSIBILITY AND PROOF OF THE CONTINUED VALIDITY OF THE
INSURANCE POLICY, SURETY BOND, OR SELF-INSURANCE.
3. A TRANSPORTATION NETWORK DRIVER MAY BE ORDERED BY A CITY WITH A
POPULATION OF ONE MILLION OR MORE, OR A COUNTY WITHIN NEW YORK STATE
CONTIGUOUS TO SUCH CITY OR THE COUNTY OF SUFFOLK OR THE COUNTY OF ROCK-
LAND TO REPAIR THE TRANSPORTATION NETWORK VEHICLE WHERE IT APPEARS THAT
THE TRANSPORTATION NETWORK VEHICLE NO LONGER MEETS THE REASONABLE STAND-
ARDS FOR SAFE OPERATION PRESCRIBED BY REGULATIONS OF SUCH JURISDICTION.
S. 4280 13
UPON FAILURE OF THE TRANSPORTATION NETWORK VEHICLE OWNER TO COMPLY WITH
SUCH AN ORDER WITHIN TEN DAYS AFTER SERVICE THEREOF, THE TRANSPORTATION
NETWORK COMPANY SHALL NO LONGER PERMIT SUCH TRANSPORTATION NETWORK VEHI-
CLE TO BE USED FOR TRANSPORTATION NETWORK SERVICES.
S 10. This act shall take effect immediately.

S4280A (ACTIVE) - Summary

Relates to transportation network companies that use a digital network to connect transportation network drivers to transportation network riders for the purpose of providing transportation; provides for insurance for such companies and implements registration, regulation and operational requirements.

S4280A (ACTIVE) - Sponsor Memo

BILL NUMBER:S4280A
TITLE OF BILL: An act to amend the insurance law, the vehicle and
traffic law, the general municipal law and the transportation law, in
relation to transportation network companies
PURPOSE: To establish, regulate and provide proper insurance for
transportation network companies and drivers.
SUMMARY OF PROVISIONS: Sections 1 and 2 of the bill amend the
insurance law by adding two new sections to authorize the issuance of
automobile insurance policies to transportation network companies and
transportation network company drivers on a group basis and to
regulate the interaction of private passenger automobile insurance
policies with insurance policies covering transportation network
services.
Sections 3 through 9 of the bill amend certain existing sections of
the vehicle and traffic law, the general municipal law, the
transportation law, and the insurance law in order to permit the
establishment and operation of transportation network companies.
Section 10 of the bill amends the vehicle and traffic law by adding a
new Title X-A and article 46-A, which empowers the commissioner of
motor vehicles to issue permits to transportation network companies
and to regulate transportation network companies and transportation

network company drivers through establishment of registration,
operational, and insurance requirements. It also authorizes the
commissioner of motor vehicles to take action against a transportation
network company for any violations of the new article 46-A of the
vehicle and traffic law.
Section 11 is the effective date.
JUSTIFICATION: Transportation Network Companies (TNCs) provide a
digital platform that matches consumers with a community of vetted
local drivers offering rides using their personal vehicles. Existing
transportation options alone can no longer fully accommodate growing
populations, yet 80% of the seats in personal vehicles remain empty.
TNC platforms are already filling those empty seats across the country
by providing additional transportation options to communities that
need them most and reducing the economic burden of car ownership.
The broader benefits of ridesharing are being realized in communities
where TNCs have been able to scale effectively. Ridesharing protects
consumer choice, responds to unmet market demands, supplies accessible
and affordable transportation options to underserved areas, provides
economic opportunities, reduces drunk driving, eases traffic
congestion, curbs air pollution and provides last mile solutions to
commuters seeking to utilize existing transit options. TNCs are
continuing to evolve to maximize these benefits with innovative
options in the largest markets where they have been able to grow
within the framework of reasonable regulation.
TNCs have proactively addressed safety issues by developing practices
and policies that provide unprecedented transparency for both
passengers and drivers. They have worked with insurers to develop
policies that provide a significantly higher level of coverage than is
required or typical for-hire-vehicles in New York. These policies can
help set a baseline for consumer protection while competition will
continue to push standards even higher. This bill would balance the
need to ensure that necessary safety standards are met by existing and
emerging TNCs while enabling growth and innovation to fully realize
the benefits that consumers are demanding.
LEGISLATIVE HISTORY: New Bill.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately

S T A T E O F N E W Y O R K
________________________________________________________________________
4280--A
2015-2016 Regular Sessions
I N S E N A T E
March 11, 2015
___________
Introduced by Sens. SEWARD, AMEDORE, AVELLA, BRESLIN, DeFRANCISCO,
FUNKE, PANEPINTO, RANZENHOFER, VALESKY -- read twice and ordered
printed, and when printed to be committed to the Committee on Insur-
ance -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the insurance law, the vehicle and traffic law, the
general municipal law and the transportation law, in relation to
transportation network companies
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The insurance law is amended by adding a new section 3441
to read as follows:
S 3441. TRANSPORTATION NETWORK COMPANIES. (A) NOTWITHSTANDING ANY
OTHER PROVISION OF THIS CHAPTER, THIS SECTION SHALL APPLY TO TRANSPORTA-
TION NETWORK COMPANIES.
(B) FOR PURPOSES OF THIS SECTION THE FOLLOWING DEFINITIONS SHALL
APPLY:
(1) "PERSONAL VEHICLE" MEANS A MOTOR VEHICLE USED BY A TRANSPORTATION
NETWORK COMPANY DRIVER AND IS:
(A) OWNED, LEASED OR OTHERWISE AUTHORIZED FOR USE BY THE TRANSPORTA-
TION NETWORK COMPANY DRIVER; AND
(B) NOT A TAXICAB, LIVERY OR FOR-HIRE VEHICLE.
(2) "DIGITAL NETWORK" MEANS ANY ONLINE-ENABLED APPLICATION, SOFTWARE,
WEBSITE OR SYSTEM OFFERED OR UTILIZED BY A TRANSPORTATION NETWORK COMPA-
NY THAT ENABLES THE PREARRANGEMENT OF RIDES WITH TRANSPORTATION NETWORK
COMPANY DRIVERS.
(3) "TRANSPORTATION NETWORK COMPANY" MEANS A CORPORATION, PARTNERSHIP,
SOLE PROPRIETORSHIP, OR OTHER ENTITY THAT IS OPERATING IN THIS STATE
THAT USES A DIGITAL NETWORK TO CONNECT TRANSPORTATION NETWORK COMPANY
RIDERS TO TRANSPORTATION NETWORK COMPANY DRIVERS WHO PROVIDE PREARRANGED
RIDES. A TRANSPORTATION NETWORK COMPANY SHALL NOT BE DEEMED TO CONTROL,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09726-04-5

S. 4280--A 2
DIRECT OR MANAGE THE PERSONAL VEHICLES OR TRANSPORTATION NETWORK COMPANY
DRIVERS THAT CONNECT TO ITS DIGITAL NETWORK, EXCEPT WHERE AGREED TO BY
WRITTEN CONTRACT.
(4) "TRANSPORTATION NETWORK COMPANY DRIVER" OR "DRIVER" MEANS AN INDI-
VIDUAL WHO:
(A) RECEIVES CONNECTIONS TO POTENTIAL RIDERS AND RELATED SERVICES FROM
A TRANSPORTATION NETWORK COMPANY IN EXCHANGE FOR PAYMENT OF A FEE TO THE
TRANSPORTATION NETWORK COMPANY; AND
(B) USES A PERSONAL VEHICLE TO OFFER OR PROVIDE A PREARRANGED RIDE TO
RIDERS UPON CONNECTION THROUGH A DIGITAL NETWORK CONTROLLED BY A TRANS-
PORTATION NETWORK COMPANY IN RETURN FOR COMPENSATION OR PAYMENT OF A
FEE.
(5) "TRANSPORTATION NETWORK COMPANY RIDER" OR "RIDER" MEANS AN INDI-
VIDUAL OR PERSONS WHO USE A TRANSPORTATION NETWORK COMPANY'S DIGITAL
NETWORK TO CONNECT WITH A TRANSPORTATION NETWORK DRIVER WHO PROVIDES
PREARRANGED RIDES TO THE RIDER IN THE DRIVER'S PERSONAL VEHICLE BETWEEN
POINTS CHOSEN BY THE RIDER.
(6) "PREARRANGED RIDE" MEANS THE PROVISION OF TRANSPORTATION BY A
DRIVER TO A RIDER, BEGINNING WHEN A DRIVER ACCEPTS A RIDE REQUESTED BY A
RIDER THROUGH A DIGITAL NETWORK CONTROLLED BY A TRANSPORTATION NETWORK
COMPANY, CONTINUING WHILE THE DRIVER TRANSPORTS A REQUESTING RIDER, AND
ENDING WHEN THE LAST REQUESTING RIDER DEPARTS FROM THE PERSONAL VEHICLE.
A PREARRANGED RIDE DOES NOT INCLUDE TRANSPORTATION PROVIDED USING A
TAXICAB, LIVERY, LIMOUSINE, OR OTHER FOR-HIRE VEHICLE.
(7) "GROUP POLICY" MEANS AN INSURANCE POLICY ISSUED PURSUANT TO
SECTION THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THIS ARTICLE.
(C) A TRANSPORTATION NETWORK COMPANY DRIVER OR TRANSPORTATION NETWORK
COMPANY ON THE DRIVER'S BEHALF THROUGH A GROUP POLICY, SHALL MAINTAIN
PRIMARY AUTOMOBILE INSURANCE THAT:
(1) RECOGNIZES THAT THE DRIVER IS A TRANSPORTATION NETWORK COMPANY
DRIVER OR OTHERWISE USES A VEHICLE TO TRANSPORT PASSENGERS FOR COMPEN-
SATION AND COVERS THE DRIVER:
(A) WHILE THE DRIVER IS LOGGED ON TO THE TRANSPORTATION NETWORK COMPA-
NY'S DIGITAL NETWORK; OR
(B) WHILE THE DRIVER IS ENGAGED IN A PREARRANGED RIDE.
(2) THE FOLLOWING AUTOMOBILE INSURANCE REQUIREMENTS SHALL APPLY WHILE
A PARTICIPATING TRANSPORTATION NETWORK COMPANY DRIVER IS LOGGED ON TO
THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK AND IS AVAILABLE TO
RECEIVE TRANSPORTATION REQUESTS BUT IS NOT ENGAGED IN A PREARRANGED
RIDE:
(A) PRIMARY AUTOMOBILE LIABILITY INSURANCE IN THE AMOUNT OF AT LEAST
FIFTY THOUSAND DOLLARS FOR DEATH AND BODILY INJURY PER PERSON, ONE
HUNDRED THOUSAND DOLLARS FOR DEATH AND BODILY INJURY PER INCIDENT, AND
TWENTY-FIVE THOUSAND DOLLARS FOR PROPERTY DAMAGE AND COVERAGE IN SATIS-
FACTION OF THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN
SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE AND ARTICLE
FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS PROMULGATED THEREUNDER.
(B) THE COVERAGE REQUIREMENTS OF THIS PARAGRAPH MAY BE SATISFIED BY
ANY OF THE FOLLOWING:
(I) AUTOMOBILE INSURANCE MAINTAINED BY THE TRANSPORTATION NETWORK
COMPANY DRIVER; OR
(II) AUTOMOBILE INSURANCE PROVIDED THROUGH A GROUP POLICY MAINTAINED
BY THE TRANSPORTATION NETWORK COMPANY; OR
(III) ANY COMBINATION OF CLAUSE (I) OR (II) OF THIS SUBPARAGRAPH.
S. 4280--A 3
(3) THE FOLLOWING AUTOMOBILE INSURANCE REQUIREMENTS SHALL APPLY WHILE
A TRANSPORTATION NETWORK COMPANY DRIVER IS ENGAGED IN A PREARRANGED
RIDE:
(A) PRIMARY AUTOMOBILE LIABILITY INSURANCE THAT PROVIDES AT LEAST ONE
MILLION DOLLARS FOR DEATH, BODILY INJURY AND PROPERTY DAMAGE AND COVER-
AGE IN SATISFACTION OF THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET
FORTH IN SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE AND
ARTICLE FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS PROMULGATED THERE-
UNDER.
(B) THE COVERAGE REQUIREMENTS OF THIS PARAGRAPH MAY BE SATISFIED BY
ANY OF THE FOLLOWING:
(I) AUTOMOBILE INSURANCE MAINTAINED BY THE TRANSPORTATION NETWORK
COMPANY DRIVER; OR
(II) AUTOMOBILE INSURANCE PROVIDED THROUGH A GROUP POLICY MAINTAINED
BY THE TRANSPORTATION NETWORK COMPANY; OR
(III) ANY COMBINATION OF CLAUSES (I) AND (II) OF THIS SUBPARAGRAPH.
(4) IF INSURANCE MAINTAINED BY A DRIVER IN PARAGRAPH TWO OR THREE OF
THIS SUBSECTION HAS LAPSED OR DOES NOT PROVIDE THE REQUIRED COVERAGE,
INSURANCE MAINTAINED BY A TRANSPORTATION NETWORK COMPANY SHALL PROVIDE
THE COVERAGE REQUIRED BY THIS SUBSECTION BEGINNING WITH THE FIRST DOLLAR
OF A CLAIM AND HAVE THE DUTY TO DEFEND SUCH CLAIM.
(5) COVERAGE UNDER AN AUTOMOBILE INSURANCE POLICY MAINTAINED BY THE
TRANSPORTATION NETWORK COMPANY SHALL NOT BE DEPENDENT ON A PERSONAL
AUTOMOBILE INSURER FIRST DENYING A CLAIM NOR SHALL A PERSONAL AUTOMOBILE
INSURANCE POLICY BE REQUIRED TO FIRST DENY A CLAIM.
(6) INSURANCE REQUIRED BY THIS SUBSECTION MAY BE PLACED WITH AN INSUR-
ER AUTHORIZED OR ELIGIBLE TO WRITE INSURANCE IN THIS STATE AND SHALL BE
ELIGIBLE FOR PLACEMENT BY AN EXCESS LINE BROKER LICENSED PURSUANT TO
ARTICLE TWENTY-ONE OF THIS CHAPTER.
(7) INSURANCE SATISFYING THE REQUIREMENTS OF THIS SUBSECTION SHALL BE
DEEMED TO SATISFY THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN
SUBDIVISION FOUR OF SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND
TRAFFIC LAW, SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE,
AND ARTICLE FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS PROMULGATED THER-
EUNDER, AND SUCH OTHER REQUIREMENTS THAT MAY APPLY FOR THE PURPOSES OF
SATISFYING THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE
USE OR OPERATION OF A MOTOR VEHICLE.
(8) A TRANSPORTATION NETWORK COMPANY DRIVER SHALL CARRY PROOF OF
COVERAGE SATISFYING PARAGRAPHS TWO AND THREE OF THIS SUBSECTION WITH HIM
OR HER AT ALL TIMES DURING HIS OR HER USE OF A VEHICLE IN CONNECTION
WITH A TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK. IN THE EVENT OF
AN ACCIDENT, A TRANSPORTATION NETWORK COMPANY DRIVER SHALL PROVIDE THIS
INSURANCE COVERAGE INFORMATION TO THE DIRECTLY INTERESTED PARTIES, AUTO-
MOBILE INSURERS AND INVESTIGATING POLICE OFFICERS, UPON REQUEST. UPON
SUCH REQUEST, A TRANSPORTATION NETWORK COMPANY DRIVER SHALL ALSO
DISCLOSE TO DIRECTLY INTERESTED PARTIES, AUTOMOBILE INSURERS, AND INVES-
TIGATING POLICE OFFICERS, WHETHER HE OR SHE WAS LOGGED ON TO THE TRANS-
PORTATION NETWORK COMPANY'S DIGITAL NETWORK OR ON A PREARRANGED RIDE AT
THE TIME OF AN ACCIDENT.
(D) THE TRANSPORTATION NETWORK COMPANY SHALL DISCLOSE IN WRITING TO
TRANSPORTATION NETWORK COMPANY DRIVERS THE FOLLOWING BEFORE THEY ARE
ALLOWED TO ACCEPT A REQUEST FOR A PREARRANGED RIDE ON THE TRANSPORTATION
NETWORK COMPANY'S DIGITAL NETWORK:
(1) THE INSURANCE COVERAGE, INCLUDING THE TYPES OF COVERAGE AND THE
LIMITS FOR EACH COVERAGE, THAT THE TRANSPORTATION NETWORK COMPANY
PROVIDES WHILE THE TRANSPORTATION NETWORK COMPANY DRIVER USES A PERSONAL
S. 4280--A 4
VEHICLE IN CONNECTION WITH A TRANSPORTATION NETWORK COMPANY'S DIGITAL
NETWORK; AND
(2) THAT THE TRANSPORTATION NETWORK COMPANY DRIVER'S OWN AUTOMOBILE
INSURANCE POLICY MIGHT NOT PROVIDE ANY COVERAGE WHILE THE DRIVER IS
LOGGED ON TO THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK AND IS
AVAILABLE TO RECEIVE TRANSPORTATION REQUESTS OR IS ENGAGED IN A PREAR-
RANGED RIDE, DEPENDING ON ITS TERMS.
(E) (1) INSURERS THAT WRITE AUTOMOBILE INSURANCE IN THIS STATE MAY
EXCLUDE ANY AND ALL COVERAGE AFFORDED UNDER THE POLICY ISSUED TO AN
OWNER OR OPERATOR OF A PERSONAL VEHICLE FOR ANY LOSS OR INJURY THAT
OCCURS WHILE A DRIVER IS LOGGED ON TO A TRANSPORTATION NETWORK COMPANY'S
DIGITAL NETWORK OR WHILE A DRIVER PROVIDES A PREARRANGED RIDE. THIS
RIGHT TO EXCLUDE ALL COVERAGE MAY APPLY TO ANY COVERAGE INCLUDED IN AN
AUTOMOBILE INSURANCE POLICY INCLUDING, BUT NOT LIMITED TO:
(A) LIABILITY COVERAGE FOR BODILY INJURY AND PROPERTY DAMAGE;
(B) COVERAGE PROVIDED PURSUANT TO ARTICLE FIFTY-ONE OF THIS CHAPTER;
(C) UNINSURED AND UNDERINSURED MOTORIST COVERAGE; AND
(D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH
NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THIS CHAPTER.
(2) SUCH EXCLUSIONS SHALL APPLY NOTWITHSTANDING ANY REQUIREMENT UNDER
THE LAW TO THE CONTRARY. NOTHING IN THIS SECTION IMPLIES OR REQUIRES
THAT A PERSONAL AUTOMOBILE INSURANCE POLICY PROVIDE COVERAGE WHILE THE
DRIVER IS LOGGED ON TO THE TRANSPORTATION NETWORK COMPANY'S DIGITAL
NETWORK, WHILE THE DRIVER IS ENGAGED IN A PREARRANGED RIDE OR WHILE THE
DRIVER OTHERWISE USES A VEHICLE TO TRANSPORT PASSENGERS FOR COMPEN-
SATION.
(3) NOTHING SHALL BE DEEMED TO PRECLUDE AN INSURER FROM PROVIDING
COVERAGE FOR THE TRANSPORTATION NETWORK COMPANY DRIVER'S VEHICLE, IF IT
SO CHOSE TO DO SO BY CONTRACT OR ENDORSEMENT.
(4) AUTOMOBILE INSURERS THAT EXCLUDE THE COVERAGE DESCRIBED IN
SUBSECTION (C) OF THIS SECTION SHALL HAVE NO DUTY TO DEFEND OR INDEMNIFY
ANY CLAIM EXPRESSLY EXCLUDED THEREUNDER. NOTHING IN THIS ARTICLE SHALL
BE DEEMED TO INVALIDATE OR LIMIT AN EXCLUSION CONTAINED IN A POLICY
INCLUDING ANY POLICY IN USE OR APPROVED FOR USE IN THIS STATE PRIOR TO
THE ENACTMENT OF THIS SECTION THAT EXCLUDES COVERAGE FOR VEHICLES USED
TO CARRY PERSONS OR PROPERTY FOR A CHARGE OR AVAILABLE FOR HIRE BY THE
PUBLIC.
(5) AN AUTOMOBILE INSURER THAT DEFENDS OR INDEMNIFIES A CLAIM AGAINST
A DRIVER THAT IS EXCLUDED UNDER THE TERMS OF ITS POLICY, SHALL HAVE A
RIGHT OF CONTRIBUTION AGAINST OTHER INSURERS THAT PROVIDE AUTOMOBILE
INSURANCE TO THE SAME DRIVER IN SATISFACTION OF THE COVERAGE REQUIRE-
MENTS OF SUBSECTION (C) OF THIS SECTION AT THE TIME OF LOSS.
(6) IN A CLAIMS COVERAGE INVESTIGATION, TRANSPORTATION NETWORK COMPA-
NIES AND ANY INSURER POTENTIALLY PROVIDING COVERAGE UNDER SUBSECTION (C)
OF THIS SECTION SHALL, WITHIN FIFTEEN DAYS AFTER A CLAIM HAS BEEN FILED,
FACILITATE THE EXCHANGE OF RELEVANT INFORMATION WITH DIRECTLY INVOLVED
PARTIES AND ANY INSURER OF THE TRANSPORTATION NETWORK COMPANY DRIVER IF
APPLICABLE, INCLUDING THE PRECISE TIMES THAT A TRANSPORTATION NETWORK
COMPANY DRIVER LOGGED ON AND OFF OF THE TRANSPORTATION NETWORK COMPANY'S
DIGITAL NETWORK IN THE TWELVE HOUR PERIOD IMMEDIATELY PRECEDING AND IN
THE TWELVE HOUR PERIOD IMMEDIATELY FOLLOWING THE ACCIDENT AND DISCLOSE
TO ONE ANOTHER A CLEAR DESCRIPTION OF THE COVERAGE, EXCLUSIONS AND
LIMITS PROVIDED UNDER ANY AUTOMOBILE INSURANCE MAINTAINED UNDER
SUBSECTION (C) OF THIS SECTION.
S. 4280--A 5
S 2. The insurance law is amended by adding a new section 3455 to read
as follows:
S 3455. TRANSPORTATION NETWORK COMPANY GROUP INSURANCE POLICIES. (A)
FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY:
(1) "TRANSPORTATION NETWORK COMPANY" SHALL HAVE THE MEANING SET FORTH
IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF
THIS ARTICLE.
(2) "CERTIFICATE" OR "CERTIFICATE OF INSURANCE" MEANS ANY POLICY,
CONTRACT OR OTHER EVIDENCE OF INSURANCE, OR RIDER OR ENDORSEMENT THERE-
TO, ISSUED TO A GROUP MEMBER UNDER A TRANSPORTATION NETWORK COMPANY
GROUP POLICY.
(3) "TRANSPORTATION NETWORK COMPANY GROUP POLICY" OR "GROUP POLICY"
MEANS GROUP POLICY, INCLUDING CERTIFICATE ISSUED TO THE GROUP MEMBERS,
WHERE THE GROUP POLICYHOLDER IS A TRANSPORTATION NETWORK COMPANY AND THE
POLICY PROVIDES INSURANCE TO THE TRANSPORTATION NETWORK COMPANY AND TO
GROUP MEMBERS:
(A) IN ACCORDANCE WITH THE REQUIREMENTS OF SUBSECTION (C) OF SECTION
THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THIS ARTICLE;
(B) OF THE TYPE DESCRIBED IN PARAGRAPHS THIRTEEN, FOURTEEN AND/OR
NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THIS CHAPTER; AND
(C) IN SATISFACTION OF THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET
FORTH IN SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE,
SUBDIVISION FOUR OF SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND
TRAFFIC LAW, AND ARTICLE FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS
PROMULGATED THEREUNDER.
(4) "GROUP MEMBER" MEANS A "TRANSPORTATION NETWORK COMPANY DRIVER" AS
DEFINED IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-
ONE OF THIS ARTICLE.
(5) "GROUP POLICYHOLDER" MEANS A TRANSPORTATION NETWORK COMPANY.
(6) "PERSONAL VEHICLE" SHALL HAVE THE MEANING SET FORTH IN SUBSECTION
(B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THIS ARTICLE.
(B) AN INSURER MAY ISSUE OR ISSUE FOR DELIVERY IN THIS STATE A TRANS-
PORTATION NETWORK COMPANY GROUP POLICY TO A TRANSPORTATION NETWORK
COMPANY AS A GROUP POLICYHOLDER ONLY IN ACCORDANCE WITH THE PROVISIONS
OF THIS SECTION.
(C)(1) A TRANSPORTATION NETWORK COMPANY GROUP POLICY SHALL PROVIDE
COVERAGE FOR A PERSONAL VEHICLE IN ACCORDANCE WITH THE REQUIREMENTS OF
SUBSECTION (C) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THIS
ARTICLE.
(2) A TRANSPORTATION NETWORK COMPANY GROUP POLICY MAY PROVIDE:
(A) COVERAGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED PURSU-
ANT TO SUBSECTION (C) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE
OF THIS ARTICLE;
(B) SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE FOR BODI-
LY INJURY PURSUANT TO PARAGRAPH TWO OF SUBSECTION (F) OF SECTION THREE
THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE;
(C) SUPPLEMENTAL SPOUSAL LIABILITY INSURANCE PURSUANT TO SUBSECTION
(G) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS CHAPTER; AND
(D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH
NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THIS CHAPTER.
(3) THE COVERAGE DESCRIBED IN PARAGRAPHS ONE AND TWO OF THIS
SUBSECTION MAY BE PROVIDED IN ONE GROUP POLICY OR IN SEPARATE GROUP
POLICIES.
S. 4280--A 6
(4) A TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUDING CERTIF-
ICATES, SHALL BE ISSUED BY AN INSURER AUTHORIZED OR ELIGIBLE TO WRITE
INSURANCE IN THIS STATE AND SHALL BE ELIGIBLE FOR PLACEMENT BY AN EXCESS
LINE BROKER LICENSED PURSUANT TO ARTICLE TWENTY-ONE OF THIS CHAPTER.
(5) A POLICYHOLDER ALSO MAY BE AN INSURED UNDER A GROUP POLICY.
(D) THE PREMIUM FOR THE TRANSPORTATION NETWORK COMPANY GROUP POLICY,
INCLUDING CERTIFICATES MAY BE PAID BY THE GROUP POLICYHOLDER FROM THE
FUNDS CONTRIBUTED:
(1) WHOLLY BY THE GROUP POLICYHOLDER;
(2) WHOLLY BY THE GROUP MEMBERS; OR
(3) JOINTLY BY THE GROUP POLICYHOLDER AND THE GROUP MEMBERS.
(E) (1) ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETRO-
SPECTIVE PREMIUM REFUND IN RESPECT OF PREMIUMS PAID BY THE GROUP POLICY-
HOLDER MAY:
(A) BE APPLIED TO REDUCE THE PREMIUM CONTRIBUTION OF THE GROUP POLICY-
HOLDER, BUT NOT IN EXCESS OF THE PROPORTION TO ITS CONTRIBUTION; OR
(B) BE RETAINED BY THE GROUP POLICYHOLDER.
(2) ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETROSPEC-
TIVE PREMIUM REFUND NOT DISTRIBUTED UNDER PARAGRAPH ONE OF THIS
SUBSECTION SHALL BE:
(A) APPLIED TO REDUCE FUTURE PREMIUMS AND, ACCORDINGLY, FUTURE
CONTRIBUTIONS, OF EXISTING OR FUTURE GROUP MEMBERS, OR BOTH; OR
(B) PAID OR REFUNDED TO THOSE GROUP MEMBERS INSURED ON THE DATE THE
PAYMENT OR REFUND IS MADE TO THE GROUP POLICYHOLDER, IF DISTRIBUTED BY
THE GROUP POLICYHOLDER, OR ON THE DATE OF MAILING, IF DISTRIBUTED
DIRECTLY BY THE INSURER, SUBJECT TO THE FOLLOWING REQUIREMENTS:
(I) THE INSURER SHALL BE RESPONSIBLE FOR DETERMINING THE ALLOCATION OF
THE PAYMENT OF REFUND TO THE GROUP MEMBERS;
(II) IF THE GROUP POLICYHOLDER DISTRIBUTES THE PAYMENT OR REFUND, THE
INSURER SHALL BE RESPONSIBLE FOR AUDIT TO ASCERTAIN THAT THE PAYMENT OR
REFUND IS ACTUALLY MADE IN ACCORDANCE WITH THE ALLOCATION PROCEDURE; AND
(III) IF THE GROUP POLICYHOLDER FAILS TO MAKE THE PAYMENT OR REFUND,
THE INSURER SHALL MAKE THE PAYMENT OR REFUND DIRECTLY OR USE THE METHOD
PROVIDED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH.
(3) NOTWITHSTANDING PARAGRAPHS ONE AND TWO OF THIS SUBSECTION, IF A
DIVIDEND ACCRUES UPON TERMINATION OF COVERAGE UNDER A TRANSPORTATION
NETWORK COMPANY GROUP POLICY, THE PREMIUM FOR WHICH WAS PAID OUT OF
FUNDS CONTRIBUTED BY GROUP MEMBERS SPECIFICALLY FOR THE COVERAGE, THE
DIVIDEND SHALL BE PAID OR REFUNDED BY THE GROUP POLICYHOLDER TO THE
GROUP MEMBERS INSURED ON THE DATE THE PAYMENT OR REFUND IS MADE TO THE
GROUP POLICYHOLDER, NET OF REASONABLE EXPENSES INCURRED BY THE GROUP
POLICYHOLDER IN PAYING OR REFUNDING THE DIVIDEND TO SUCH GROUP MEMBERS.
(4) FOR THE PURPOSES OF THIS SUBSECTION, "DIVIDEND" MEANS A RETURN BY
THE INSURER OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY OF EXCESS
PREMIUMS TO THE GROUP POLICYHOLDER IN LIGHT OF FAVORABLE LOSS EXPERI-
ENCE, INCLUDING RETROSPECTIVE PREMIUM CREDITS OR RETROSPECTIVE PREMIUM
REFUNDS. THE TERM "DIVIDEND" DOES NOT INCLUDE REIMBURSEMENTS OR FEES
RECEIVED BY A GROUP POLICYHOLDER IN CONNECTION WITH THE OPERATION OR
ADMINISTRATION OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUD-
ING ADMINISTRATIVE REIMBURSEMENTS, FEES FOR SERVICES PROVIDED BY THE
GROUP POLICYHOLDER, OR TRANSACTIONAL SERVICE FEES.
(F) THE INSURER MUST TREAT IN LIKE MANNER ALL ELIGIBLE GROUP MEMBERS
OF THE SAME CLASS AND STATUS.
(G) EACH POLICY WRITTEN PURSUANT TO THIS SECTION SHALL PROVIDE PER
OCCURRENCE LIMITS OF COVERAGE FOR EACH GROUP MEMBER IN AN AMOUNT NOT
LESS THAN THAT REQUIRED BY OF SUBDIVISION TWO OF SECTION TWO THOUSAND
S. 4280--A 7
TWO HUNDRED THREE OF THE VEHICLE AND TRAFFIC LAW, AND MAY PROVIDE COVER-
AGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED UNDER THE LAW.
(H) (1) THE INSURER OR THE GROUP POLICYHOLDER SHALL BE RESPONSIBLE FOR
MAILING OR DELIVERY OF A CERTIFICATE OF INSURANCE TO EACH GROUP MEMBER
INSURED UNDER THE TRANSPORTATION NETWORK COMPANY GROUP POLICY. THE
INSURER OR THE GROUP POLICYHOLDER SHALL ALSO BE RESPONSIBLE FOR THE
MAILING OR DELIVERY TO EACH GROUP MEMBER OF AN AMENDED CERTIFICATE OF
INSURANCE OR ENDORSEMENT TO THE CERTIFICATE, WHENEVER THERE IS A CHANGE
IN LIMITS; CHANGE IN TYPE OF COVERAGE; ADDITION, REDUCTION, OR ELIMI-
NATION OF COVERAGE; OR ADDITION OF EXCLUSION, UNDER THE TRANSPORTATION
NETWORK COMPANY GROUP POLICY OR CERTIFICATE.
(2) THE CERTIFICATE SHALL CONTAIN IN SUBSTANCE ALL MATERIAL TERMS AND
CONDITIONS OF COVERAGE AFFORDED TO GROUP MEMBERS, UNLESS THE TRANSPORTA-
TION NETWORK COMPANY GROUP POLICY IS INCORPORATED BY REFERENCE AND A
COPY OF THE GROUP POLICY ACCOMPANIES THE CERTIFICATE.
(3) IF ANY COVERAGE AFFORDED TO THE GROUP MEMBER IS EXCESS OF APPLICA-
BLE INSURANCE COVERAGE, THE CERTIFICATE SHALL CONTAIN A NOTICE ADVISING
THE GROUP MEMBERS THAT, IF THE MEMBER HAS OTHER INSURANCE COVERAGE,
SPECIFIED COVERAGES UNDER THE TRANSPORTATION NETWORK COMPANY GROUP POLI-
CY WILL BE EXCESS OVER THE OTHER INSURANCE.
(I) A GROUP POLICYHOLDER SHALL COMPLY WITH THE PROVISIONS OF SECTION
TWO THOUSAND ONE HUNDRED TWENTY-TWO OF THIS CHAPTER, IN THE SAME MANNER
AS AN AGENT OR BROKER, IN ANY ADVERTISEMENT, SIGN, PAMPHLET, CIRCULAR,
CARD, OR OTHER PUBLIC ANNOUNCEMENT REFERRING TO COVERAGE UNDER A TRANS-
PORTATION NETWORK COMPANY GROUP POLICY OR CERTIFICATE.
(J) A TRANSPORTATION NETWORK COMPANY GROUP POLICY SHALL NOT BE SUBJECT
TO SECTION THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OR SECTION THREE
THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE; PROVIDED THAT THE
FOLLOWING REQUIREMENTS SHALL APPLY WITH REGARD TO TERMINATION OF COVER-
AGE:
(1)(A) AN INSURER MAY TERMINATE A GROUP POLICY OR CERTIFICATE ONLY IF
CANCELLATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN SUBPAR-
AGRAPH (A) THROUGH (D) OR (F) THROUGH (H) OF PARAGRAPH ONE OF SUBSECTION
(C) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE;
PROVIDED, HOWEVER, THAT AN ACT OR OMISSION BY A GROUP MEMBER THAT WOULD
CONSTITUTE THE BASIS FOR CANCELLATION OF AN INDIVIDUAL CERTIFICATE SHALL
NOT CONSTITUTE THE BASIS FOR CANCELLATION OF THE GROUP POLICY.
(B) WHERE THE PREMIUM IS DERIVED WHOLLY FROM FUNDS CONTRIBUTED BY THE
GROUP POLICYHOLDER, AN INSURER MAY CANCEL AN INDIVIDUAL CERTIFICATE ONLY
IF CANCELLATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN
SUBPARAGRAPH (B), (C) OR (H) OF PARAGRAPH ONE OF SUBSECTION (C) OF
SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE.
(2) (A) AN INSURER'S CANCELLATION OF A GROUP POLICY, INCLUDING ALL
CERTIFICATES, SHALL NOT BECOME AFFECTIVE UNTIL THIRTY DAYS AFTER THE
INSURER MAILS OR DELIVERS WRITTEN NOTICE OF CANCELLATION TO THE GROUP
POLICYHOLDER AT THE MAILING ADDRESS SHOWN IN THE POLICY.
(I) WHERE ALL OR PART OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED
BY THE GROUP MEMBER SPECIFICALLY FOR THE COVERAGE, THE INSURER SHALL
ALSO MAIL OR DELIVER WRITTEN NOTICE OF CANCELLATION OF THE GROUP POLICY
TO THE GROUP MEMBER AT THE GROUP MEMBER'S MAILING ADDRESS.
(II) WHERE NONE OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED BY A
GROUP MEMBER SPECIFICALLY FOR THE COVERAGE, THE GROUP POLICY HOLDER
SHALL MAIL OR DELIVER WRITTEN NOTICE TO THE GROUP MEMBER ADVISING THE
GROUP MEMBER OF THE CANCELLATION OF THE GROUP POLICY AND THE EFFECTIVE
DATE OF CANCELLATION. THE GROUP POLICY HOLDER SHALL MAIL OR DELIVER THE
S. 4280--A 8
WRITTEN NOTICE WITHIN NINETY DAYS AFTER RECEIVING NOTICE OF CANCELLATION
FROM THE INSURER.
(B) AN INSURER'S CANCELLATION OF AN INDIVIDUAL CERTIFICATE SHALL NOT
BECOME EFFECTIVE UNTIL THIRTY DAYS AFTER THE INSURER MAILS OR DELIVERS
WRITTEN NOTICE OF CANCELLATION TO THE GROUP MEMBER AT THE GROUP MEMBER'S
MAILING ADDRESS AND TO THE GROUP POLICYHOLDER AT THE MAILING ADDRESS
SHOWN IN THE GROUP POLICY.
(3) (A) A GROUP POLICYHOLDER MAY CANCEL A GROUP POLICY, INCLUDING ALL
CERTIFICATES, OR ANY INDIVIDUAL CERTIFICATE, FOR A REASON UPON THIRTY
DAYS WRITTEN NOTICE TO THE INSURER AND EACH GROUP MEMBER; AND
(B) THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER WRITTEN NOTICE TO
EACH AFFECTED GROUP MEMBER OF THE GROUP POLICYHOLDER'S CANCELLATION OF
THE GROUP POLICY OR CERTIFICATE AND THE EFFECTIVE DATE OF CANCELLATION.
THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER THE WRITTEN NOTICE TO THE
GROUP MEMBER'S MAILING ADDRESS AT LEAST THIRTY DAYS PRIOR TO THE EFFEC-
TIVE DATE OF CANCELLATION.
(4) A GROUP MEMBER MAY CANCEL OPTIONAL COVERAGE UPON PROVIDING NOTICE
TO THE INSURER AND THE GROUP POLICYHOLDER. FOR THE PURPOSES OF THIS
PARAGRAPH, "OPTIONAL COVERAGE" MEANS COVERAGE OTHER THAN FINANCIAL
RESPONSIBILITY REQUIREMENTS DESCRIBED IN SUBPARAGRAPH (C) OF PARAGRAPH
THREE OF SUBSECTION (A) OF THIS SECTION THAT AN INDIVIDUAL GROUP MEMBER
PURCHASES ON AN OPTIONAL BASIS.
(5) (A) UNLESS A GROUP POLICY PROVIDES FOR A LONGER POLICY PERIOD, THE
POLICY AND ALL CERTIFICATES SHALL BE ISSUED OR RENEWED FOR A ONE-YEAR
POLICY PERIOD.
(B) THE GROUP POLICYHOLDER SHALL BE ENTITLED TO RENEW THE GROUP POLICY
AND ALL CERTIFICATES UPON TIMELY PAYMENT OF THE PREMIUM BILLED TO THE
GROUP POLICYHOLDER FOR THE RENEWAL, UNLESS:
(I) THE INSURER MAILS OR DELIVERS TO THE GROUP POLICYHOLDER AND ALL
GROUP MEMBERS WRITTEN NOTICE OF NONRENEWAL, OR CONDITIONAL RENEWAL; AND
(II) THE INSURER MAILS OR DELIVERS THE WRITTEN NOTICE AT LEAST THIRTY,
BUT NOT MORE THAN ONE HUNDRED TWENTY DAYS PRIOR TO THE EXPIRATION DATE
SPECIFIED IN THE POLICY OR, IF NO DATE IS SPECIFIED, THE NEXT ANNIVER-
SARY DATE OF THE POLICY.
(6) WHERE THE GROUP POLICYHOLDER NONRENEWS THE GROUP POLICY, THE GROUP
POLICYHOLDER SHALL MAIL OR DELIVER WRITTEN NOTICE TO EACH GROUP MEMBER
ADVISING THE GROUP MEMBER OF NONRENEWAL OF THE GROUP POLICY AND THE
EFFECTIVE DATE OF NONRENEWAL. THE GROUP POLICYHOLDER SHALL MAIL OR
DELIVER WRITTEN NOTICE AT LEAST THIRTY DAYS PRIOR TO THE NONRENEWAL.
(7) EVERY NOTICE OF CANCELLATION, NONRENEWAL, OR CONDITIONAL RENEWAL
SHALL SET FORTH THE SPECIFIC REASON OR REASONS FOR CANCELLATION, NONRE-
NEWAL, OR CONDITIONAL RENEWAL.
(8) (A) AN INSURER SHALL NOT BE REQUIRED UNDER THIS SUBSECTION TO GIVE
NOTICE TO A GROUP MEMBER IF THE INSURER HAS BEEN ADVISED BY EITHER THE
GROUP POLICYHOLDER OR ANOTHER INSURER THAT SUBSTANTIALLY SIMILAR COVER-
AGE HAS BEEN OBTAINED FROM THE OTHER INSURER WITHOUT LAPSE OF COVERAGE.
(B) A GROUP POLICYHOLDER SHALL NOT BE REQUIRED UNDER THIS SUBSECTION
TO GIVE NOTICE TO A GROUP MEMBER IF SUBSTANTIALLY SIMILAR COVERAGE HAS
BEEN OBTAINED FROM ANOTHER INSURER WITHOUT LAPSE OF COVERAGE.
(9) (A) IF, PRIOR TO THE EFFECTIVE DATE OF CANCELLATION, NONRENEWAL,
OR CONDITIONAL RENEWAL OF THE GROUP POLICY, OR A CERTIFICATE, WHETHER
INITIATED BY THE INSURER, GROUP POLICYHOLDER OR BY THE GROUP MEMBER IN
REGARD TO THE GROUP MEMBER'S CERTIFICATE, COVERAGE ATTACHES PURSUANT TO
THE TERMS OF A GROUP POLICY, THEN THE COVERAGE SHALL BE EFFECTIVE UNTIL
EXPIRATION OF THE APPLICABLE PERIOD OF COVERAGE PROVIDED IN THE GROUP
S. 4280--A 9
POLICY NOTWITHSTANDING THE CANCELLATION, NONRENEWAL OR CONDITIONAL
NONRENEWAL OF THE GROUP POLICY.
(B) NOTWITHSTANDING SUBPARAGRAPH (A) OF THIS PARAGRAPH, AN INSURER MAY
TERMINATE COVERAGE UNDER AN INDIVIDUAL CERTIFICATE ON THE EFFECTIVE DATE
OF CANCELLATION, IF THE CERTIFICATE IS CANCELLED IN ACCORDANCE WITH THE
PROVISIONS OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION.
(K) ANY MAILING OR DELIVERY TO A GROUP MEMBER REQUIRED OR PERMITTED
UNDER THIS SECTION MAY BE MADE BY ELECTRONIC MAIL IF CONSENT TO SUCH
METHOD OF DELIVERY HAS BEEN PREVIOUSLY RECEIVED FROM SUCH GROUP MEMBER.
(L) FORMS AND RATES FOR ANY GROUP POLICY ISSUED OR ISSUED FOR DELIVERY
IN THIS STATE PURSUANT TO THIS SECTION SHALL BE FILED WITH THE SUPER-
INTENDENT IN ACCORDANCE WITH ARTICLE TWENTY-THREE OF THIS CHAPTER.
S 3. Section 121-e of the vehicle and traffic law, as added by chapter
15 of the laws of 1983, is amended to read as follows:
S 121-e. Livery. Every motor vehicle, other than a taxicab or a bus,
used in the business of transporting passengers for compensation. Howev-
er, it shall not include vehicles which are rented or leased without a
driver AND IT SHALL NOT INCLUDE TRANSPORTATION NETWORK VEHICLES AS
DEFINED IN SUBDIVISION EIGHT OF SECTION TWO THOUSAND TWO HUNDRED ONE OF
THIS CHAPTER.
S 4. Section 148-a of the vehicle and traffic law, as amended by chap-
ter 15 of the laws of 1983, is amended to read as follows:
S 148-a. Taxicab. Every motor vehicle, other than a bus, used in the
business of transporting passengers for compensation, and operated in
such business under a license or permit issued by a local authority.
However, it shall not include vehicles which are rented or leased with-
out a driver AND IT SHALL NOT INCLUDE TRANSPORTATION NETWORK VEHICLES AS
DEFINED IN SUBDIVISION EIGHT OF SECTION TWO THOUSAND TWO HUNDRED ONE OF
THIS CHAPTER.
S 5. The opening paragraph of subdivision 7 of section 401 of the
vehicle and traffic law, as amended by chapter 55 of the laws of 1992,
is amended to read as follows:
FOR PURPOSES OF THIS SUBDIVISION A MOTOR VEHICLE THAT MEETS THE DEFI-
NITION OF A TRANSPORTATION NETWORK VEHICLE AS DEFINED IN SUBDIVISION
EIGHT OF SECTION TWO THOUSAND TWO HUNDRED ONE OF THIS CHAPTER SHALL NOT
BE REQUIRED TO OBTAIN A FOR HIRE OR COMMERCIAL VEHICLE REGISTRATION. The
registration fees to be paid upon the registration or reregistration, in
accordance with the provisions of this article, of buses, of motor vehi-
cles constructed or specially equipped for the transportation of goods,
wares and merchandise, commonly known as auto trucks or light delivery
cars, of taxicabs, livery and of certain other motor vehicles specified
herein are hereby established as follows:
S 6. Paragraph c of subdivision 1 of section 498 of the vehicle and
traffic law, as added by chapter 549 of the laws of 2006, is amended to
read as follows:
c. "Pre-arranged for-hire vehicle" shall mean a motor vehicle, other
than a bus, that is used in the business of transporting passengers for
compensation on a pre-arranged basis, and operated in such business
under a license or permit issued by a licensing jurisdiction, EXCEPT
THAT IT SHALL NOT MEAN A MOTOR VEHICLE THAT MEETS THE DEFINITION OF A
TRANSPORTATION NETWORK VEHICLE AS DEFINED IN SUBDIVISION EIGHT OF
SECTION TWO THOUSAND TWO HUNDRED ONE OF THIS CHAPTER. The term "pre-ar-
ranged for-hire vehicle" shall apply to vehicles as defined herein
regardless of any other provision of local law or rule defining or
describing such vehicles by any other terms such as livery, black car,
or luxury limousine.
S. 4280--A 10
S 7. Section 181 of the general municipal law is amended by adding a
new closing paragraph to read as follows:
FOR THE PURPOSES OF THIS ARTICLE, THE TERMS TAXICABS, LIMOUSINES OR
LIVERY VEHICLES SHALL NOT INCLUDE MOTOR VEHICLES THAT MEET THE DEFI-
NITION OF A TRANSPORTATION NETWORK VEHICLE AS DEFINED IN SUBDIVISION
EIGHT OF SECTION TWO THOUSAND TWO HUNDRED ONE OF THE VEHICLE AND TRAFFIC
LAW.
S 8. Section 151 of the transportation law is amended by adding a new
subdivision 13 to read as follows:
13. IN A VEHICLE THAT MEETS THE DEFINITION OF A TRANSPORTATION NETWORK
VEHICLE AS DEFINED IN SUBDIVISION EIGHT OF SECTION TWO THOUSAND TWO
HUNDRED ONE OF THE VEHICLE AND TRAFFIC LAW.
S 9. Subsection (b) of section 5103 of the insurance law is amended by
adding a new paragraph 4 to read as follows:
(4) IS INJURED WHILE OPERATING A PERSONAL VEHICLE AS A TRANSPORTATION
NETWORK COMPANY DRIVER OR TRANSPORTATION NETWORK COMPANY RIDER AS SUCH
TERMS ARE DEFINED IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR
HUNDRED FORTY-ONE OF THIS CHAPTER.
S 10. The vehicle and traffic law is amended by adding a new title
10-a to read as follows:
TITLE X-A
TRANSPORTATION NETWORK COMPANIES
ARTICLE 46-A. TRANSPORTATION NETWORK COMPANIES.
ARTICLE 46-A
TRANSPORTATION NETWORK COMPANIES
SECTION 2200. SHORT TITLE.
2201. DEFINITIONS.
2202. REGULATION OF TRANSPORTATION NETWORK COMPANIES.
2203. REGISTRATION AND INSURANCE.
2204. OPERATIONAL REQUIREMENTS OF TRANSPORTATION NETWORK COMPA-
NIES.
2205. TRANSPORTATION NETWORK SERVICE LIMITATIONS.
2206. VEHICLE REQUIREMENTS FOR TRANSPORTATION NETWORK VEHICLES.
2207. PERMIT REQUIRED FOR TRANSPORTATION NETWORK COMPANIES,
PENALTY FOR VIOLATION, AND RULES.
2208. DRIVER LICENSING REQUIREMENT.
2209. DISTRIBUTION OF FEES AND PENALTIES.
2210. RULES AND INSPECTIONS.
2211. RULE OF CONSTRUCTION.
S 2200. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "TRANSPORTATION NETWORK COMPANY ACT".
S 2201. DEFINITIONS. WHEN USED IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
1. "DIGITAL NETWORK" SHALL HAVE THE MEANING SET FORTH IN SUBSECTION
(B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THE INSURANCE
LAW.
2. "PREARRANGED RIDE" SHALL HAVE THE MEANING SET FORTH IN SUBSECTION
(B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THE INSURANCE
LAW.
3. "TRANSPORTATION NETWORK COMPANY" SHALL HAVE THE MEANING SET FORTH
IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF
THE INSURANCE LAW.
4. "TRANSPORTATION NETWORK COMPANY DRIVER" OR "DRIVER" SHALL HAVE THE
MEANING SET FORTH IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR
HUNDRED FORTY-ONE OF THE INSURANCE LAW.
S. 4280--A 11
5. "TRANSPORTATION NETWORK COMPANY RIDER" OR "RIDER" SHALL HAVE THE
MEANING SET FORTH IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR
HUNDRED FORTY-ONE OF THE INSURANCE LAW.
6. "PERSONAL VEHICLE" SHALL HAVE THE MEANING SET FORTH IN SUBSECTION
(B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THE INSURANCE
LAW.
7. "TRANSPORTATION NETWORK SERVICES" MEANS THE PROVISION OF TRANSPOR-
TATION BY A TRANSPORTATION NETWORK DRIVER TO A TRANSPORTATION NETWORK
RIDER WITH WHOM THE TRANSPORTATION NETWORK DRIVER IS MATCHED THROUGH A
TRANSPORTATION NETWORK COMPANY. THE TERM DOES NOT INCLUDE SERVICES
PROVIDED EITHER DIRECTLY BY OR UNDER CONTRACT WITH A POLITICAL SUBDIVI-
SION OR OTHER ENTITY EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 115 OF
THE FEDERAL "INTERNAL REVENUE CODE OF 1986", AS AMENDED.
8. "TRANSPORTATION NETWORK VEHICLE" MEANS A MOTOR VEHICLE USED BY A
TRANSPORTATION NETWORK DRIVER THAT IS HIS OR HER OWN PERSONAL MOTOR
VEHICLE AND ALSO USED TO PROVIDE A PREARRANGED RIDE FOR TRANSPORTATION
NETWORK RIDERS MATCHED THROUGH A TRANSPORTATION NETWORK COMPANY'S
DIGITAL NETWORK. A TRANSPORTATION NETWORK VEHICLE IS NOT A TAXICAB, AS
DEFINED IN SECTION ONE HUNDRED FORTY-EIGHT-A OF THIS CHAPTER, OR A
LIVERY AS DEFINED IN SECTION ONE HUNDRED TWENTY-ONE-E OF THIS CHAPTER.
9. "UNMATCHED PERIOD" MEANS A PERIOD OF TIME THAT BEGINS WHEN A TRANS-
PORTATION NETWORK COMPANY DRIVER IS AVAILABLE TO ACCEPT A REQUESTED RIDE
THROUGH A DIGITAL NETWORK AND TO PROVIDE TRANSPORTATION NETWORK
SERVICES, BUT HAS NOT YET ACCEPTED A REQUESTED RIDE AND IS NOT PROVIDING
TRANSPORTATION NETWORK SERVICES, AND ENDS WHEN A TRANSPORTATION NETWORK
COMPANY DRIVER HAS ACCEPTED SUCH A REQUESTED RIDE.
10. "SERIOUS CRIMINAL OFFENSE" SHALL MEAN A CONVICTION OF (I) A FELONY
INVOLVING THE USE OF A MOTOR VEHICLE; (II) A FELONY INVOLVING MANUFAC-
TURING, DISTRIBUTING OR DISPENSING A DRUG AS DEFINED IN SECTION ONE
HUNDRED FOURTEEN-A OF THIS CHAPTER OR POSSESSION OF ANY SUCH DRUG WITH
INTENT TO MANUFACTURE, DISTRIBUTE OR DISPENSE SUCH DRUG IN WHICH A MOTOR
VEHICLE WAS USED; (III) A VIOLATION OF SUBDIVISION ONE OR TWO OF SECTION
SIX HUNDRED OF THIS CHAPTER; (IV) OPERATING A MOTOR VEHICLE WHEN, AS A
RESULT OF PRIOR VIOLATIONS COMMITTED WHILE OPERATING A MOTOR VEHICLE,
THE INDIVIDUAL'S DRIVER'S LICENSE IS REVOKED, SUSPENDED, OR CANCELED;
(V) CAUSING A FATALITY THROUGH THE NEGLIGENT OPERATION OF A MOTOR VEHI-
CLE, INCLUDING BUT NOT LIMITED TO THE CRIMES OF VEHICULAR MANSLAUGHTER
OR CRIMINALLY NEGLIGENT HOMICIDE; (VI) HOMICIDE; AND (VII) A FELONY OR
ASSAULT, SEXUAL OFFENSES, KIDNAPPING, OR BURGLARY.
S 2202. REGULATION OF TRANSPORTATION NETWORK COMPANIES.
1. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, TRANSPORTATION NETWORK
COMPANIES ARE GOVERNED EXCLUSIVELY BY THIS ARTICLE.
2. THE PROVISIONS OF SECTIONS NINETY-SIX, NINETY-EIGHT, NINETY-NINE,
ONE HUNDRED THREE, ONE HUNDRED SIXTEEN, ONE HUNDRED FORTY, ONE HUNDRED
FORTY-TWO, ONE HUNDRED FORTY-THREE, ONE HUNDRED FIFTY-TWO, ONE HUNDRED
FIFTY-SIX, ONE HUNDRED FIFTY-SEVEN, AND ONE HUNDRED FIFTY-EIGHT OF THE
TRANSPORTATION LAW, AND 17 NYCRR PT. 720, 17 NYCRR PT. 721, 17 NYCRR PT.
730, AND 17 NYCRR PT. 741, SHALL NOT APPLY TO TRANSPORTATION NETWORK
VEHICLES.
3. THE PROVISIONS OF SUBPARAGRAPH (V) OF PARAGRAPH (A) OF SUBDIVISION
TWO OF SECTION FIVE HUNDRED ONE OF THIS CHAPTER SHALL NOT APPLY TO
TRANSPORTATION NETWORK COMPANIES OR TRANSPORTATION NETWORK DRIVERS.
S 2203. REGISTRATION AND INSURANCE.
1. A TRANSPORTATION NETWORK COMPANY SHALL OBTAIN AUTHORIZATION TO DO
BUSINESS IN NEW YORK AS REQUIRED BY SECTION ONE THOUSAND THREE HUNDRED
ONE OF THE BUSINESS CORPORATION LAW.
S. 4280--A 12
2. A TRANSPORTATION NETWORK COMPANY SHALL CAUSE TO BE FILED WITH THE
COMMISSIONER OF MOTOR VEHICLES DOCUMENTATION EVIDENCING THAT A TRANSPOR-
TATION NETWORK COMPANY DRIVER OR THE TRANSPORTATION NETWORK COMPANY ON
THE DRIVER'S BEHALF MAINTAINS AUTOMOBILE INSURANCE THAT SATISFIES THE
REQUIREMENTS OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THE
INSURANCE LAW.
S 2204. OPERATIONAL REQUIREMENTS OF TRANSPORTATION NETWORK COMPANIES.
1. THE FOLLOWING REQUIREMENTS APPLY TO THE PROVISION OF TRANSPORTATION
NETWORK SERVICES:
(A) A TRANSPORTATION NETWORK COMPANY SHALL PROVIDE TRANSPORTATION
NETWORK SERVICES TO THE PUBLIC IN A NONDISCRIMINATORY MANNER, REGARDLESS
OF GEOGRAPHIC LOCATION OF THE DEPARTURE POINT OR DESTINATION, ONCE THE
DRIVER AND RIDER HAVE BEEN MATCHED THROUGH THE DIGITAL NETWORK, AS
REQUIRED BY SECTION ONE HUNDRED SIX OF THE TRANSPORTATION LAW.
(B) A TRANSPORTATION NETWORK COMPANY SHALL NOT IMPOSE ADDITIONAL
CHARGES FOR PROVIDING TRANSPORTATION NETWORK SERVICES TO PERSONS WITH
PHYSICAL OR MENTAL DISABILITIES BECAUSE OF THOSE DISABILITIES AND SHALL
REQUIRE TRANSPORTATION NETWORK COMPANY DRIVERS TO PERMIT A SERVICE
ANIMAL TO ACCOMPANY A TRANSPORTATION NETWORK COMPANY RIDER ON A PREAR-
RANGED RIDE UNLESS THE PRESENCE OF A SERVICE ANIMAL WOULD SIGNIFICANTLY
COMPROMISE THE HEALTH OF THE TRANSPORTATION NETWORK COMPANY DRIVER DUE
TO A MEDICALLY DIAGNOSED ALLERGY. IF A TRANSPORTATION NETWORK COMPANY
RIDER WITH PHYSICAL OR MENTAL DISABILITIES REQUIRES THE USE OF THE
TRANSPORTATION NETWORK COMPANY RIDER'S MOBILITY EQUIPMENT, A TRANSPORTA-
TION NETWORK COMPANY SHALL REQUIRE TRANSPORTATION NETWORK COMPANY DRIV-
ERS TO STORE THE MOBILITY EQUIPMENT IN THE TRANSPORTATION NETWORK VEHI-
CLE DURING A PREARRANGED RIDE IF THE TRANSPORTATION NETWORK VEHICLE IS
REASONABLY CAPABLE OF STORING THE MOBILITY EQUIPMENT. IF THE TRANSPORTA-
TION NETWORK COMPANY DRIVER IS UNABLE TO STORE A TRANSPORTATION NETWORK
COMPANY RIDER'S MOBILITY EQUIPMENT IN THE TRANSPORTATION NETWORK VEHI-
CLE, THE TRANSPORTATION NETWORK COMPANY DRIVER SHALL REFER THE TRANSPOR-
TATION NETWORK COMPANY RIDER TO ANOTHER TRANSPORTATION NETWORK COMPANY
DRIVER OR TRANSPORTATION SERVICE PROVIDER WITH A VEHICLE THAT IS
EQUIPPED TO ACCOMMODATE THE RIDER'S MOBILITY EQUIPMENT.
(C) A TRANSPORTATION NETWORK COMPANY IS NOT LIABLE FOR A TRANSPORTA-
TION NETWORK COMPANY DRIVER'S VIOLATION OF PARAGRAPH (B) OF THIS SUBDI-
VISION UNLESS THE TRANSPORTATION NETWORK COMPANY DRIVER'S VIOLATION HAS
BEEN PREVIOUSLY REPORTED TO THE TRANSPORTATION NETWORK COMPANY IN WRIT-
ING, AND THE TRANSPORTATION NETWORK COMPANY HAS FAILED TO REASONABLY
ADDRESS THE ALLEGED VIOLATION. THE COMMISSIONER SHALL AFFORD A TRANSPOR-
TATION NETWORK COMPANY THE SAME DUE PROCESS RIGHTS AFFORDED TRANSPORTA-
TION PROVIDERS IN DEFENDING AGAINST CIVIL PENALTIES ASSESSED BY THE
COMMISSIONER OF MOTOR VEHICLES.
(D) ALTHOUGH TRANSPORTATION NETWORK COMPANIES MAY PROVIDE PLATFORMS
ALLOWING DRIVERS AND PASSENGERS TO "RATE" EACH OTHER, A TRANSPORTATION
NETWORK COMPANY SHALL USE REASONABLE EFFORTS TO ENSURE THAT SUCH RATINGS
ARE NOT BASED ON UNLAWFUL DISCRIMINATION.
(E) A TRANSPORTATION NETWORK COMPANY SHALL MAKE AVAILABLE TO PROSPEC-
TIVE TRANSPORTATION NETWORK RIDERS AN EXPLANATION OF THE METHOD BY WHICH
THE TRANSPORTATION NETWORK COMPANY CALCULATES FARES AND THE OPTION TO
DETERMINE AN ESTIMATED FARE ON ITS DIGITAL NETWORK OR WEBSITE.
(F) UPON COMPLETION OF A PREARRANGED RIDE, A TRANSPORTATION NETWORK
COMPANY SHALL TRANSMIT TO THE TRANSPORTATION NETWORK COMPANY RIDER AN
ELECTRONIC RECEIPT DOCUMENTING: (I) THE POINT OF ORIGIN AND DESTINATION
OF THE PREARRANGED RIDE; (II) THE TOTAL DURATION AND DISTANCE OF THE
PREARRANGED RIDE; (III) THE TOTAL FARE PAID, INCLUDING THE BASE FARE AND
S. 4280--A 13
ANY ADDITIONAL CHARGES INCURRED FOR DISTANCE TRAVELED OR DURATION OF THE
PREARRANGED RIDE; AND (IV) THE DRIVER'S FIRST NAME.
(G) A TRANSPORTATION NETWORK COMPANY SHALL MAKE AVAILABLE TO ALL
TRANSPORTATION NETWORK RIDERS A CUSTOMER SUPPORT CONTACT ON ITS DIGITAL
NETWORK OR WEBSITE FOR TRANSPORTATION NETWORK COMPANY RIDER INQUIRIES.
(H) BEFORE PERMITTING A PERSON TO ACT AS A TRANSPORTATION NETWORK
COMPANY DRIVER, A TRANSPORTATION NETWORK COMPANY SHALL CONFIRM THAT THE
PERSON IS AT LEAST TWENTY-ONE YEARS OF AGE AND POSSESSES: (I) A VALID
DRIVER'S LICENSE; (II) PROOF OF AUTOMOBILE INSURANCE; AND (III) PROOF OF
A NEW YORK VEHICLE REGISTRATION;
(I) BEFORE PERMITTING A PERSON TO ACT AS A TRANSPORTATION NETWORK
COMPANY DRIVER, A TRANSPORTATION NETWORK COMPANY SHALL REQUIRE EACH
TRANSPORTATION NETWORK COMPANY DRIVER TO WEAR A SAFETY BELT WHILE
PERFORMING TRANSPORTATION NETWORK SERVICES. THE TRANSPORTATION NETWORK
COMPANY SHALL ESTABLISH A DRIVER TRAINING PROGRAM FOR ALL TRANSPORTATION
NETWORK COMPANY DRIVERS CONCERNING SAFETY AND PROPER OPERATION OF A
TRANSPORTATION NETWORK VEHICLE PRIOR TO THE DRIVER BEING ABLE TO OFFER
SERVICE.
(J) THE DEPARTMENT OF CRIMINAL JUSTICE SERVICES SHALL, UPON REQUEST,
PROVIDE TO A TRANSPORTATION NETWORK COMPANY A PROSPECTIVE TRANSPORTATION
NETWORK COMPANY DRIVER'S CRIMINAL HISTORY OR A TRANSPORTATION NETWORK
COMPANY SHALL OBTAIN AN EQUIVALENT CRIMINAL HISTORY FROM A THIRD PARTY
PROVIDER BEFORE PERMITTING A PERSON TO ACT AS A TRANSPORTATION NETWORK
COMPANY DRIVER. A TRANSPORTATION COMPANY SHALL NOT PERMIT AN INDIVIDUAL
TO PROVIDE TRANSPORTATION NETWORK SERVICES AS A TRANSPORTATION NETWORK
COMPANY DRIVER IF THE INDIVIDUAL HAS BEEN CONVICTED OF A SERIOUS CRIMI-
NAL OFFENSE.
(K) A TRANSPORTATION NETWORK COMPANY SHALL REQUIRE ALL TRANSPORTATION
NETWORK COMPANY DRIVERS TO REPORT ANY CRIMINAL CONVICTIONS IMMEDIATELY
AND SHALL NO LONGER PERMIT A TRANSPORTATION NETWORK COMPANY DRIVER TO
PROVIDE TRANSPORTATION NETWORK SERVICES IF THE TRANSPORTATION NETWORK
COMPANY BECOMES AWARE THAT THE SUBJECT TRANSPORTATION NETWORK COMPANY
DRIVER HAS BEEN CONVICTED OF A SERIOUS CRIMINAL OFFENSE.
(L) BEFORE PERMITTING A PERSON TO ACT AS A TRANSPORTATION NETWORK
COMPANY DRIVER, A TRANSPORTATION NETWORK COMPANY SHALL CONDUCT A REVIEW
OF THE DRIVING RECORD OF EVERY PROSPECTIVE TRANSPORTATION NETWORK COMPA-
NY DRIVER AND SHALL NOT PERMIT AN INDIVIDUAL TO BECOME A TRANSPORTATION
NETWORK COMPANY DRIVER IF SUCH INDIVIDUAL HAS MORE THAN THREE MOVING
VIOLATIONS WITHIN THE TWELVE MONTH PERIOD PRIOR TO PROVIDING TRANSPORTA-
TION NETWORK SERVICES AS A TRANSPORTATION NETWORK COMPANY DRIVER.
(M) A TRANSPORTATION NETWORK COMPANY SHALL INSTITUTE A ZERO TOLERANCE
INTOXICATING SUBSTANCE POLICY WITH RESPECT TO TRANSPORTATION NETWORK
COMPANY DRIVERS AS FOLLOWS:
(I) THE TRANSPORTATION NETWORK COMPANY SHALL INCLUDE ON ITS WEBSITE,
DIGITAL NETWORK AND TRANSPORTATION NETWORK COMPANY RIDERS' RECEIPTS A
NOTICE CONCERNING THE TRANSPORTATION NETWORK COMPANY'S ZERO-TOLERANCE
POLICY AND THE METHODS TO REPORT A DRIVER WHOM THE RIDER REASONABLY
SUSPECTS WAS UNDER THE INFLUENCE OF DRUGS OR ALCOHOL DURING THE COURSE
OF THE TRANSPORTATION NETWORK RIDE; AND
(II) PROMPTLY AFTER A ZERO-TOLERANCE COMPLAINT IS FILED, THE TRANSPOR-
TATION NETWORK COMPANY SHALL SUSPEND THE TRANSPORTATION NETWORK COMPANY
DRIVER FOR FURTHER INVESTIGATION.
(N) A TRANSPORTATION NETWORK COMPANY SHALL REQUIRE THAT EACH TRANSPOR-
TATION NETWORK VEHICLE DISPLAYS A MARKING THAT IDENTIFIES THE VEHICLE AS
A TRANSPORTATION NETWORK VEHICLE THAT IS VISIBLE FROM THE EXTERIOR OF
THE VEHICLE AT ALL TIMES DURING WHICH THE VEHICLE IS BEING USED AS A
S. 4280--A 14
TRANSPORTATION NETWORK VEHICLE. THE DIGITAL NETWORK USED BY A TRANSPOR-
TATION NETWORK COMPANY TO CONNECT DRIVERS AND RIDERS MUST DISPLAY FOR
THE TRANSPORTATION NETWORK COMPANY RIDER: A PICTURE OF THE TRANSPORTA-
TION NETWORK COMPANY DRIVER AND A PICTURE OF THE TRANSPORTATION NETWORK
VEHICLE THE TRANSPORTATION NETWORK COMPANY DRIVER IS APPROVED TO USE,
INCLUDING THE LICENSE PLATE NUMBER TO IDENTIFY THE TRANSPORTATION
NETWORK VEHICLE.
(O) A TRANSPORTATION NETWORK COMPANY SHALL NOT PERMIT A TRANSPORTATION
NETWORK COMPANY DRIVER TO OFFER OR PROVIDE TRANSPORTATION NETWORK
SERVICES FOR MORE THAN TWELVE CONSECUTIVE HOURS.
(P) A TRANSPORTATION NETWORK COMPANY SHALL DISCLOSE, IN WRITING, TO
EACH PROSPECTIVE TRANSPORTATION NETWORK COMPANY DRIVER THE FOLLOWING:
(I) THE TERMS OF ANY INSURANCE, INCLUDING THE TYPES OF COVERAGE AND
THE LIMITS FOR EACH COVERAGE, UNDER ANY POLICY THAT THE TRANSPORTATION
NETWORK COMPANY MAINTAINS ON THE DRIVER'S BEHALF PROVIDING COVERAGE
WHILE THE TRANSPORTATION NETWORK COMPANY DRIVER USES A PERSONAL VEHICLE
IN CONNECTION WITH A TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK;
AND
(II) THAT THE TRANSPORTATION NETWORK COMPANY DRIVER'S OWN PRIVATE
PASSENGER AUTOMOBILE INSURANCE POLICY MAY NOT PROVIDE ANY COVERAGE
DURING AN UNMATCHED PERIOD OR WHILE A TRANSPORTATION NETWORK COMPANY
DRIVER IS ENGAGED IN A PREARRANGED RIDE, UNLESS A CONTRACT OR ENDORSE-
MENT PROVIDING SUCH COVERAGE HAS BEEN OBTAINED FROM THE DRIVER'S PRIVATE
PASSENGER AUTOMOBILE INSURER.
(Q) OTHER THAN THE DISCLOSURE OF AGGREGATED USER DATA AND OTHER INFOR-
MATION ABOUT TRANSPORTATION NETWORK USERS THAT IS NOT PERSONALLY IDEN-
TIFIABLE, A TRANSPORTATION NETWORK COMPANY SHALL NOT DISCLOSE TO A THIRD
PARTY ANY PERSONALLY IDENTIFIABLE INFORMATION CONCERNING A USER OF THE
TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK UNLESS: (I) THE TRANS-
PORTATION NETWORK COMPANY OBTAINS THE USER'S CONSENT TO DISCLOSE
PERSONALLY IDENTIFIABLE INFORMATION; (II) DISCLOSURE IS NECESSARY TO
COMPLY WITH A LEGAL OBLIGATION; OR (III) DISCLOSURE IS NECESSARY TO
PROTECT OR DEFEND THE TERMS AND CONDITIONS FOR USE OF THE SERVICE OR TO
INVESTIGATE VIOLATIONS OF THE TERMS AND CONDITIONS.
2. IF ANY PERSON FILES A COMPLAINT WITH THE COMMISSIONER OF MOTOR
VEHICLES AGAINST A TRANSPORTATION NETWORK COMPANY OR TRANSPORTATION
NETWORK COMPANY DRIVER, THE COMMISSIONER MAY INSPECT THE TRANSPORTATION
NETWORK COMPANY'S RECORDS AS REASONABLY NECESSARY TO INVESTIGATE AND
RESOLVE THE COMPLAINT.
S 2205. TRANSPORTATION NETWORK SERVICE LIMITATIONS. A TRANSPORTATION
NETWORK COMPANY DRIVER SHALL NOT PROVIDE TRANSPORTATION NETWORK SERVICES
UNLESS A TRANSPORTATION NETWORK COMPANY HAS MATCHED THE TRANSPORTATION
NETWORK COMPANY DRIVER TO A TRANSPORTATION NETWORK RIDER THROUGH A
DIGITAL NETWORK. A TRANSPORTATION NETWORK COMPANY DRIVER SHALL NOT
SOLICIT OR ACCEPT THE ON-DEMAND SUMMONING OF A RIDE, OTHERWISE KNOWN AS
A "STREET HAIL".
S 2206. VEHICLE REQUIREMENTS FOR TRANSPORTATION NETWORK VEHICLES.
1. THE FOLLOWING REQUIREMENTS APPLY TO THE TRANSPORTATION NETWORK
VEHICLES:
(A) A TRANSPORTATION NETWORK VEHICLE MUST HAVE AT LEAST FOUR DOORS AND
BE DESIGNED TO CARRY NO MORE THAN EIGHT PASSENGERS, INCLUDING THE TRANS-
PORTATION NETWORK COMPANY DRIVER.
(B) A TRANSPORTATION NETWORK VEHICLE SHALL DISPLAY THE NAME OR LOGO OF
THE TRANSPORTATION NETWORK COMPANY AFFIXED TO THE WINDSHIELD IN A FORM
AND MANNER THAT IS VISIBLE FROM THE EXTERIOR OF THE VEHICLE.
S. 4280--A 15
(C) EACH TRANSPORTATION NETWORK VEHICLE MUST BE INSPECTED NO LESS
FREQUENTLY THAN EVERY TWELVE MONTHS BY AN OFFICIAL INSPECTION STATION
LICENSED PURSUANT TO SECTION THREE HUNDRED THREE OF THIS CHAPTER, OR, IF
THE TRANSPORTATION NETWORK VEHICLE IS REGISTERED IN ANOTHER STATE, BY
THE AGENCY RESPONSIBLE FOR VEHICLE REGISTRATION AND INSPECTION IN THAT
STATE, AND EACH TRANSPORTATION NETWORK VEHICLE MUST DISPLAY A VALID
INSPECTION STICKER INDICATING THE DATE OF THE LAST INSPECTION AND/OR THE
EXPIRATION DATE, IF SUCH STICKERS ARE ISSUED BY THE STATE OF REGISTRA-
TION.
S 2207. PERMIT REQUIRED FOR TRANSPORTATION NETWORK COMPANIES, PENALTY
FOR VIOLATION, AND RULES.
1. A PERSON SHALL NOT OPERATE A TRANSPORTATION NETWORK COMPANY IN NEW
YORK WITHOUT FIRST HAVING OBTAINED A PERMIT FROM THE COMMISSIONER OF
MOTOR VEHICLES.
2. THE COMMISSIONER OF MOTOR VEHICLES SHALL ISSUE A PERMIT TO EACH
TRANSPORTATION NETWORK COMPANY THAT MEETS THE REQUIREMENTS OF THIS ARTI-
CLE AND PAYS AN ANNUAL PERMIT FEE.
3. THE ANNUAL PERMIT FEE SHALL BE ESTABLISHED AND LEVIED BY THE
COMMISSIONER OF MOTOR VEHICLES SUBJECT TO THE APPROVAL OF THE DIRECTOR
OF THE DIVISION OF THE BUDGET IN AN AMOUNT THAT IS REASONABLY SUFFICIENT
TO RAISE FUNDS TO DEFRAY THE EXPENSES OF THE DEPARTMENT IN ADMINISTERING
AND ENFORCING THIS ARTICLE. THE COMMISSIONER MAY PROMULGATE THE RULES
AND REGULATIONS NECESSARY TO ADMINISTER THE ANNUAL PERMIT FEE.
4. THE COMMISSIONER OF MOTOR VEHICLES SHALL DETERMINE A REASONABLE
FORM AND MANNER OF APPLICATION FOR A TRANSPORTATION NETWORK COMPANY
PERMIT.
5. A PERMIT MAY BE SUSPENDED BY THE COMMISSIONER OF MOTOR VEHICLES FOR
FAILURE TO COMPLY WITH THE INSURANCE, REPORTING, OR SAFETY REQUIREMENTS
OF THIS ARTICLE. ANY SUCH PERMIT MAY THEREAFTER BE REVOKED IN NO LESS
THAN THIRTY DAYS AFTER THE DATE OF SUSPENSION ORDERED BY THE COMMISSION-
ER OF MOTOR VEHICLES IF THE CARRIER DOES NOT COMPLY WITH THE RATE,
INSURANCE, ANNUAL REPORTING, OR SAFETY REQUIREMENTS OF THIS ARTICLE.
6. FOR A VIOLATION OF THIS ARTICLE OR A FAILURE TO COMPLY WITH A
COMMISSIONER OF MOTOR VEHICLES ORDER, DECISION, OR RULE ISSUED UNDER
THIS ARTICLE, A TRANSPORTATION NETWORK COMPANY IS SUBJECT TO THE COMMIS-
SIONER'S AUTHORITY UNDER THIS CHAPTER.
7. THE COMMISSIONER OF MOTOR VEHICLES MAY DENY AN APPLICATION UNDER
THIS ARTICLE OR REFUSE TO RENEW THE PERMIT OF A TRANSPORTATION NETWORK
COMPANY BASED ON A DETERMINATION THAT THE TRANSPORTATION NETWORK COMPANY
HAS NOT SATISFIED A CIVIL PENALTY ARISING OUT OF AN ADMINISTRATIVE OR
ENFORCEMENT ACTION BROUGHT BY THE COMMISSIONER.
S 2208. DRIVER LICENSING REQUIREMENT. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, A CLASS D DRIVER'S LICENSE SHALL BE VALID FOR THE
PERFORMANCE OF TRANSPORTATION NETWORK SERVICES BY A TRANSPORTATION
NETWORK DRIVER.
S 2209. DISTRIBUTION OF FEES AND PENALTIES. ALL PERMIT FEES CHARGED
AND COLLECTED BY THE COMMISSIONER UNDER THIS ARTICLE SHALL BE DEPOSITED
BY THE COMPTROLLER INTO THE SPECIAL OBLIGATION RESERVE AND PAYMENT
ACCOUNT OF THE HIGHWAY AND BRIDGE TRUST FUND ESTABLISHED PURSUANT TO
SECTION EIGHTY-NINE-B OF THE STATE FINANCE LAW. ALL MONEYS RECOVERED IN
AN ACTION TO RECOVER A PENALTY OR FORFEITURE SHALL BE PAID INTO THE
STATE TREASURY TO THE CREDIT OF THE GENERAL FUND.
S 2210. RULES AND INSPECTIONS.
1. THE COMMISSIONER MAY PROMULGATE RULES CONSISTENT WITH THIS ARTICLE,
INCLUDING RULES CONCERNING ADMINISTRATION, FEES, AND SAFETY REQUIREMENTS
S. 4280--A 16
SO LONG AS THOSE RULES DO NOT EXPAND THE SUBSTANTIVE REQUIREMENTS OF
THIS ARTICLE.
2. THE COMMISSIONER MAY PROMULGATE RULES REQUIRING A TRANSPORTATION
NETWORK COMPANY TO MAINTAIN AND FILE WITH THE COMMISSIONER EVIDENCE OF
FINANCIAL RESPONSIBILITY AND PROOF OF THE CONTINUED VALIDITY OF THE
INSURANCE POLICY.
S 2211. RULE OF CONSTRUCTION. NOTHING IN THIS ARTICLE AUTHORIZES OR
SHALL BE CONSTRUED TO AUTHORIZE THE PROVISION OF TRANSPORTATION NETWORK
SERVICES IN ANY CITY WITH A POPULATION OF ONE MILLION OR MORE.
S 11. This act shall take effect immediately.

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